Hariharan Krishnan Vs ITO (ITAT Bangalore)
Foreign Tax Credit Put in the Wrong Column, Form 67 Filed Late: ITAT Allows the Claim
A taxpayer included his US deputation salary in his Indian return and sought credit for the tax paid on that income in the United States. In the original return, however, he inadvertently claimed the amount under section 89, which concerns salary relief, instead of section 90, the provision invoked for foreign tax credit under the India–USA tax treaty. He corrected the claim in a revised return, but filed Form 67 only later.
The Centralised Processing Centre (CPC) denied the foreign tax credit because Form 67 had not been filed within the prescribed time. The Bengaluru ITAT has now held that late filing of Form 67 alone cannot defeat an otherwise admissible credit. It directed the Assessing Officer (AO) to allow the claimed ₹95,537, subject to verification of the claim and the form.
How the filing error arose
Hariharan Krishnan was employed with Infosys and was deputed to the United States during the year relevant to assessment year 2019–20. His salary relating to the deputation was taxed in the USA. The Tribunal’s order records US tax equivalent to ₹95,537.
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