Pune ITAT Upholds Foreign Tax Credit Entitlement Despite Incorrect Column Entry in Form 67
Case Background
Case Name: Dhananjay Gajanan Vidwans Vs ITO (ITAT Pune)
Appeal Number: ITA No. 1212/PUN/2026
Date of Order: 28/07/2026
Assessment Year: 2023-24
Court: ITAT Pune
Overview of the Dispute
The Pune Bench of the Income Tax Appellate Tribunal recently addressed a significant question concerning the denial of Foreign Tax Credit (FTC) on purely procedural grounds. The central issue before the Tribunal was whether a genuine and substantiated claim for Foreign Tax Credit under Section 90 of the Income Tax Act, 1961 could be lawfully rejected merely because the assessee had inadvertently entered the relevant information in a wrong column of Form No. 67, despite having filed the form within the stipulated time.
The Tribunal's ruling in Dhananjay Gajanan Vidwans Vs ITO (ITAT Pune) delivers an important message: substance must prevail over form, particularly when there is no allegation of fraud, suppression, or deliberate misreporting on the part of the assessee.
Facts of the Case
The assessee, an individual, filed his return of income for Assessment Year 2023-24 on 31.07.2023. He had earned salary income from employment in the United States of America (USA), which fell within the scope of Article 16 of the India–USA Double Taxation Avoidance Agreement (DTAA). Accordingly, the assessee was entitled to claim relief by way of Foreign Tax Credit under Section 90 of the Income Tax Act, 1961 for taxes paid in the USA on such income.
In compliance with the prescribed procedure, the assessee duly filed Form No. 67 along with the return of income. However, when completing the form, the assessee committed a reporting error — the details of foreign tax paid amounting to ₹15,73,878/- were entered in an incorrect column, rather than under the column specifically designated for credit claims under Section 90/Section 90A of the Act.
Despite the timely filing of Form No. 67 and the availability of documentary evidence establishing that ₹62,63,037/- had been deducted as tax by the US employer on the assessee's salary income, the Centralised Processing Centre (CPC) denied the Foreign Tax Credit claim solely on account of the said reporting error in Form No. 67.