ITAT Hyderabad: Foreign Tax Relief Must Be Deducted While Computing Interest U/s 234A/B/C

Raveendra Nalluri Vs ACIT (ITAT Hyderabad) The Tribunal dealt with a limited issue relating to incorrect computation of interest under sections 234A, 234B, and 234C. The assessee contended that the Assessing Officer had wrongly computed interest without reducing the foreign tax relief available under sections 90/90A, resulting in excess interest demand. The ITAT accepted this contention, noting that the law clearly mandates that tax relief under sections 90/90A must be reduced from the assessed tax before calculating interest liability under these sections. Since the AO failed to grant this re...