Foreign tax credit and schedule mismatch claims require full reconciliation and merits-based review, not mechanical denial for procedural lapse.

Apparent mismatches between Schedule SI, Schedule CG and Schedule OS must be tested against the full reconciliation, including brought forward loss adjustment in Schedule BFLA; where that reconciliation explains the figures, the matter requires factual verification rather than mechanical adjustment. Foreign tax credit under section 90 cannot be rejected solely because Form 67 was filed after the intimation under section 143(1), since the filing requirement is treated as procedural and the claim must still be examined on merits. The text also notes that both disputed issues were restored for fresh consideration after hearing the assessee.

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Issues: (i) Whether the adjustment made on account of discrepancy between Schedule SI, Schedule CG and Schedule OS could be sustained without considering Schedule BFLA; (ii) Whether foreign tax credit under section 90 could be denied merely because Form 67 was filed after the intimation under section 143(1).

Issue (i): Whether the adjustment made on account of discrepancy between Schedule SI, Schedule CG and Schedule OS could be sustained without considering Schedule BFLA.

Analysis: The figures reflected in the schedules required correlation with the brought forward loss adjustment. Once Schedule BFLA was taken into account, the apparent mismatch stood explained. The matter therefore required factual verification by the Assessing Officer.

Conclusion: The adjustment was set aside for fresh consideration by the Assessing Officer, after examining Schedule BFLA and granting opportunity of hearing.

Issue (ii): Whether foreign tax credit under section 90 could be denied merely because Form 67 was filed after the intimation under section 143(1).

Analysis: Filing of Form 67 was treated as a procedural requirement, and delay in filing by itself was not considered a valid basis to reject the claim for credit for tax paid in the USA. The claim also required reconsideration in the set-aside proceedings.

Conclusion: The issue was restored to the Assessing Officer for fresh decision on the foreign tax credit claim under section 90.

Final Conclusion: The assessee obtained restoration of both disputed adjustments for fresh adjudication, and the appeal was treated as allowed for statistical purposes.

Ratio Decidendi: An apparent mismatch in returned figures must be tested against the full reconciliation, including brought forward loss adjustment, and a procedural lapse in filing Form 67 cannot by itself defeat a claim for foreign tax credit under section 90.

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