Dhananjay Gajanan Vidwans Vs ITO (ITAT Pune)
Pune ITAT Restores Foreign Tax Credit Claim After Holding Incorrect Disclosure in Form 67 Should Not Defeat Genuine FTC Entitlement
The Pune ITAT held that the assessee’s claim for Foreign Tax Credit (FTC) of ₹15.73 lakh under section 90 could not be rejected merely because the tax paid outside India was disclosed in an incorrect column of Form No. 67. The Tribunal noted that the assessee had timely filed Form 67 along with the return of income and was entitled to relief under Article 16 of the India–USA DTAA in respect of salary income earned in the USA. It further observed that the FTC claim was supported by evidence showing that foreign tax of ₹62.63 lakh had been deducted by the US employer, and the assessee had also furnished a revised Form 67 rectifying the reporting error. Holding that the denial of FTC by the CPC and its confirmation by the appellate authority was based solely on a technical defect in Form 67, the Tribunal set aside the impugned order and restored the matter to the Jurisdictional Assessing Officer for verification, directing that the Foreign Tax Credit be granted in accordance with law if the claim is found to be genuine.
FULL TEXT OF THE ORDER OF ITAT PUNE
The captioned appeal at the instance of assessee pertaining to A.Y. 2023-24 is directed against the order dated 16.01.2026 of Addl/JCIT(A), Panaji passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of intimation order dated 29.08.2024 passed u/s.143(1) of the Act.
2. The only issue for our consideration is denial of Foreign Tax Credit of Rs.15,73,878/- claimed u/s.90 of the Income Tax Act.
3. We have heard the rival submissions and perused the record placed before us. We observe that the assessee is an individual and filed the return of income for A.Y. 2023-24 on 31.07.2023. Assessee is having income from outside India (USA) and the income is covered the Double Taxation Avoidance Agreement (DTAA) provisions under Article 16 between India-USA. Assessee is eligible for the Foreign Tax Credit u/s.90 of the Act. We observe that assessee has filed Form No.67 along with the return of income furnished on 31.07.2023. There is mistake in Form No.67 because the information about tax paid outside India at Rs.15,73,878/- is not mentioned under the correct column of credit claim u/s.90/90A of the Act. Revised Form No.67 is also filed before us claiming Foreign Tax Credit at Rs.15,73,878/-. We observe that CPC has denied the Foreign Tax Credit on account of incorrect Form No.67 and thereafter ld.CIT(A) did not grant any relief.
4. We however considering the facts and circumstances of the case and that the claim of assessee for Foreign Tax Credit at Rs.15,73,878/- is based on the tax deducted on the salary income through employer at USA amounting to Rs.62,63,037/- duly supported by necessary evidence, we deem it appropriate to remit back the issue to the file of ld. Jurisdictional Assessing Officer for necessary verification. Further, if the claim of assessee is found to be correct, then necessary Foreign Tax Credit should be allowed to the assessee in accordance with law. Impugned order is set aside and the effective grounds of appeal raised by the assessee are allowed for statistical purposes.
5. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 28th day of July, 2026.
