The assessee is a non-resident reinsurance company. The primary issue was whether the assessee, was entitled to the credit of TDS deducted for the Assessment Year, despite not offering the corresponding income for tax in India.

The revenue contended that the assessee was not entitled to the credit of TDS because the income received by the Assessee was never offered to tax in India.  Further that the assessee should have revised its Return of Income to include the earnings to claim the TDS credit.

The assessee contended that the income received was not taxable in India under Section 90 of the Income Tax Act, 1961, and therefore, they were entitled to a refund of the TDS amount. Moreover, the TDS credit was duly reflected in Form 26AS, and the return was processed under Section 143(3) without any additions, thereby accepting their position.

The Hon’ble High Court held that the assessee was entitled to the TDS credit as the income was not taxable in India under Section 90 of the Act.  The Hon’ble High Court also emphasized that Section 155(14) of the Act does not require the original return to be amended or revised for the TDS credit to be granted.  The Hon’ble High Court ordered the refund of the TDS along with statutory interest to the assessee. (AY. 2015-16)