ITAT Bangalore overturns tax demand on Indian employee's Belgium salary after delayed Form 67
An Indian employee who earned a Belgium salary of Rs 14.42 lakh won relief from the Income Tax Appellate Tribunal in Bangalore, which rejected the tax demand despite his late filing of Form 67.
During the 2019-20 assessment year, the employee earned Rs 14.42 lakh in Belgium and Rs 5 lakh in India, reporting a total of Rs 19.19 lakh in his Indian return. He paid Rs 4.53 lakh Belgian tax and sought a foreign tax credit of Rs 3 lakh, but the CPC in Bangalore rejected the claim for missing Form 67. After a 1,687-day delay in appealing, the CIT(A) dismissed the appeal, prompting the employee to take the matter to the ITAT Bangalore.
The tribunal held that the delay was not evidence of negligence and that a valid credit claim should not be denied solely for a procedural default. It ordered the assessing officer to re-examine the Form 67 filing, the Belgian tax return, and supporting documents before granting the appropriate credit under the India-Belgium DTAA. The decision underscores that substantive tax rights outweigh technical oversights when the taxpayer acts in good faith.
