Tax Sparing Credit Allowed for Dividends Received Through Omani Permanent Establishment

This case note discusses the decision of the Delhi High Court in Principal Commissioner of Income Tax v. Krishak Bharati Co-op Ltd, which allowed, in accordance with the India–Oman Income Tax Treaty, the taxpayer a credit against its Indian income tax liability for Omani tax deemed to be paid on dividend income derived through a permanent establishment in Oman.