2023 (3) TMI 264 - AT - Income Tax

Short Foreign Tax Credit - Credit of TDS deducted by employer - revised computation of income furnished during assessment proceedings on the premise that the claim cannot be entertained unless made in the return of income (original or revised) - AO while including the overseas income has omitted to grant the excess foreign tax credit - CIT(A) dismissed the appeal of the assessee on the grounds that the employer has not at revised his TDS return and hence the order of the Assessing Officer is affirmed - As argued that the assessee qualified as a “Resident and Ordinarily Resident” of India and filed his return of income for AY 2014-15 in India duly reporting his Kenya sourced salary income and claimed relief under the provisions of Section 90 read with Article 25 sub article 2(a) of the India Kenya DTAA - HELD THAT:- Placing reliance on the judgment of Hon’ble Supreme Court in the case of Goetz (India) Ltd. [2006 (3) TMI 75 - SUPREME COURT] the appellate authorities are empower to accord the right relief to the assessee. Hence, we hereby direct the AO to consider the entire taxes paid in India and Tanzania and give due credit to the taxes deposited of Rs.19,26,610/- as per Form 26AS. AO shall also accord foreign tax credit as per the revised claim filed by the assessee. The tax credit to the assessee cannot be denied merely on the grounds that the deductor has not filed its revised TDS return which is beyond the control of the assessee. Ordered accordingly.