IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘D’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 585/DEL/2021 [A.Y. 2003-04]

&

CO No. 04/DEL/2025 [A/o ITA No. 1038/DEL/2023 [A.Y. 2005-06]

Canon India Pvt Ltd Vs. The Dy. C.I.T Unit No. 214-2018, 2^nd Floor Circle – 4(2)

Narain Manzil, Barakhamba Road, Delhi Connaught Place, New Delhi PAN – AAACC 4175 D ITA No. 1038/DEL/2023 [A.Y. 2005-06]

The Dy. C.I.T Vs. Canon India Pvt Ltd Circle – 4(2) Unit No. 214-2018, 2^nd Floor New Delhi Narain Manzil, Barakhamba Road, Connaught Place, New Delhi Delhi PAN – AAAFK 4094 N (Applicant) (Respondent)

Assessee By : Shri Himanshu Sinha, Adv Shri Jainender Singh Kataria, Adv Shri Prashant Meherchandani, Adv Department By : Shri Vijay B. Basanta, CIT-DR Date of Hearing : 13.08.2025 Date of Pronouncement : 10.11.2025

ORDER

PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:-

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 has preferred an appeal against the order of the ld. CIT(A), Delhi dated 21.12.2021 pertaining to Assessment Year 2005-06. The assessee has preferred cross objection against this order of the ld. CIT(A), Delhi dated

21.12.2021 pertaining to Assessment Years 2005-06.

2. Since underlying facts pertain to same assessee and identical issues are involved in the captioned appeals, they were heard together and are disposed of by this common order for the sake of convenience and brevity.

ITA No. 585/DEL/2021 [A.Y. 2003-04]

[Assessee’s Appeal]

3. The grounds raised by the assessee read as under:

“1. That on the facts and circumstances of the case and in law, the Ld. AO as well as Hon'ble Dispute Resolution Panel ('DRP') has erred in not granting complete credit of taxes paid by it in Japan on export revenues from sale of software and not restricted owing to nil tax liability on account of business losses or 10A deduction under the Income Tax Act, 1961.

1.1. That on the facts and circumstances of the case and in law, the Ld. AO and Hon'ble Dispute Resolution Panel ('DRP') has erred in not allowing complete credit of taxes paid by assessee in Japan on export revenues from sale of software amounting to Rs 20,39,37,900.

1.2. That on the facts and circumstances of the case and in law, the Ld. AO and DRP has erred in not adjudicating the claim of foreign tax credit and has framed a non-speaking order to that extent apparently ignoring the submissions duly filed by the assessee.

1.3. That on the facts and circumstances of the case and in law, the DRP has erred in not adjudicating the additional ground of objection raised by the Assessee during the DRP proceedings for grant of taxes paid in Japan.

1.4. That on the facts and circumstances of the case and in law, the Ld. AO and DRP has erred in not allowing complete credit of taxes paid by assessee in Japan by disregarding the judicial precedents placed by the assessee on record.

That on the facts and circumstances of the case and in law, the Ld. AO has erred in not granting complete credit of taxes withheld at source (by the deductors in India) claimed in the revised return of income amounting to RS 23,90,314/-.”

4. Briefly stated, the facts of the case are that the assessee, Canon India Pvt. Ltd., is a company engaged in the business of trading and distribution of imaging and optical products, including cameras, printers, and other equipment. The assessee filed its return for AY 2003-04 on 02.12.2003 declaring loss of Rs. 1,29,49,178/-. Later on the assessee revised the return on 30.10.2004 declaring loss of Rs. 4,48,34,310/- wherein deduction u/s 10A of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] was claimed against income earned by its STPI unit of RS 3,05,13,171/- Subsequently, the AO framed the assessment u/s 143(3) of the Act on 31.03.2006 at NIL income after setting off b/f losses of Rs. 2,23,80,955/- and after making an upward adj