DCIT CIRCLE 4(2), NEW DELHI vs. CANON INDIA PVT. LTD., NEW DELHI

ITA 1038/DEL/2023Status: DisposedITAT Delhi10 November 2025AY 2005-06Bench: SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)38 pages
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What did the Tribunal hold?

The Tribunal held that the assessee is eligible for the entire credit of foreign taxes deducted in Japan, even if the taxability in India was nil due to Section 10A deductions or brought-forward losses. The Tribunal relied on its own prior decision and the Karnataka High Court's ruling in Wipro Ltd. v. DCIT.

What were the facts?

The assessee claimed foreign tax credit (FTC) for taxes paid in Japan on export revenues. The Assessing Officer disallowed the FTC, stating that the corresponding income was either exempt under Section 10A or offset by brought-forward losses, resulting in no Indian tax liability.

What were the issues?

Whether foreign tax credit is allowable even when the corresponding income is exempt or offset by losses in India. Whether interest under Section 244A is payable on refunds arising from foreign tax credit.

Which sections of the Income-tax Act were involved?

Section 90,Section 10A,Section 244A

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Cases cited in this judgment(8)Show list

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Income Tax Appellate Tribunal, DELHI ‘D’ BENCH,

Before: SHRI CHALLA NAGENDRA PRASAD, & SHRI NAVEEN CHANDRA

For Appellant: Shri Himanshu Sinha, Adv, Shri Jainender Singh Kataria, Adv, Shri Prashant Meherchandani, Adv
For Respondent: Shri Vijay B. Basanta, CIT-DR
Hearing: 13.08.2025Pronounced: 10.11.2025

Heard together (4 matters)

ITA No. 585/DEL/2021
CO No. 04/DEL/2025
ITA No. 1038/DEL/2023
ITA No. 5855/DEL/2021

Read from the judgment's own cause title. This page is filed under one of them.

PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:

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The above captioned appeal by the assessee is directed against the order of the DRP-1, New Delhi dated 20.01.2021 for A.Y 2003-04. The Revenue ha

The order continues below.

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