1 day ago
ITAT Gives Taxpayer Chance to Claim Belgium Tax Credit
Abhishek Narayan earned money in both India and Belgium.
He paid tax on his Belgian salary in Belgium.
He also reported that salary in India and asked for credit for the tax already paid overseas.
The tax department rejected the request because he had not submitted Form 67 on time.
He later submitted the form and tried to correct the problem.
His appeal was also filed nearly five years late.
The tribunal said his explanation for the delay was reasonable because he had followed professional advice and pursued another remedy.
It gave him another chance to prove his claim.
The tribunal did not award the credit immediately.
Instead, an assessing officer must check his documents and calculate the correct amount.
Abhishek Narayan declared ₹14.43 lakh in Belgium salary as part of his ₹19.20 lakh Indian income for assessment year 2019-20.
He paid about ₹4.54 lakh in Belgium and claimed ₹3,00,783 in foreign tax credit under section 90.
The Centralised Processing Centre rejected the credit because Form 67 was not filed with his return.
The Bangalore ITAT condoned a 1,687-day appeal delay after finding that he had pursued rectification on professional advice.
The tribunal sent the case back to the Assessing Officer to verify Form 67, Belgian tax documents and the eligible credit.
- Who
- Abhishek Narayan, the taxpayer, and Indian income-tax authorities, including the Income Tax Appellate Tribunal.
- What
- The Bangalore ITAT condoned a 1,687-day appeal delay and remanded a rejected foreign tax credit claim for fresh verification.
- Where
- The proceedings involved India, Belgium, the Bangalore tax authorities and the Bangalore ITAT.
- When
- The ruling was delivered on 17 August 2026; the relevant assessment year was 2019-20.
- Why
- The taxpayer had not initially filed Form 67 and had filed his appeal late, but the tribunal found that these procedural issues should not automatically prevent examination of his substantive claim.
Taxpayer’s Position
Tax Authority’s Procedural Position
Form 67 requirement
Taxpayer’s Position
The taxpayer argued that the foreign tax credit should be examined because he had disclosed the Belgian income, paid tax there and later submitted Form 67 and supporting evidence.
Tax Authority’s Procedural Position
The credit was initially disallowed during return processing because Form 67, the prescribed statement for claiming foreign tax credit, had not been filed with the return.
Late appeal
Taxpayer’s Position
The taxpayer said he pursued rectification after receiving professional advice during the Covid period and only later learned that the rectification had been disposed of.
Tax Authority’s Procedural Position
The Commissioner of Income Tax (Appeals) refused to condone the 1,687-day delay and dismissed the appeal without deciding the underlying credit claim.
Final entitlement
Taxpayer’s Position
The taxpayer sought credit for Belgian tax paid on income also taxed in India under section 90 and the India-Belgium tax treaty.
Tax Authority’s Procedural Position
The tribunal did not automatically grant the credit; the Assessing Officer must verify the documents and apply the treaty limits before determining the eligible amount.
Key facts
- Taxpayer
- Abhishek Narayan
- Assessment year
- 2019-20
- Total Indian income declared
- ₹19.20 lakh
- Belgium salary included
- ₹14.43 lakh
- Tax paid in Belgium
- About ₹4.54 lakh
- Foreign tax credit claimed
- ₹3,00,783
- Appeal delay
- 1,687 days
- Next step
- The Assessing Officer must verify Form 67, the Belgian tax return and supporting documents.
Sources
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