Foreign tax credit cannot be denied solely for absence of a revised TDS return where revised claim is otherwise supported.

An assessee who offered additional overseas salary income during assessment was entitled to revise the foreign tax credit claim with support from the relevant treaty provisions and proof of foreign tax payment. The Tribunal held that appellate authorities could grant the correct relief and that foreign tax credit could not be denied merely because the deductor had not filed a revised TDS return, as that omission was beyond the assessee's control. The revised foreign tax credit claim was allowed and the balance credit denial was not sustained.

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Issues: Whether the assessee was entitled to foreign tax credit on the basis of a revised claim made during assessment proceedings and whether such credit could be denied merely because the deductor had not filed a revised TDS return.

Analysis: The assessee had offered additional overseas salary income during assessment and supported the revised claim with the relevant treaty provisions and proof of tax payment abroad. The Assessing Officer accepted the additional income but granted only the credit claimed in the original computation. The Tribunal held that the appellate authorities were empowered to grant the correct relief and that the assessee could not be deprived of foreign tax credit solely for want of a revised TDS return filed by the deductor, a matter beyond the assessee's control.

Conclusion: The revised foreign tax credit claim was allowed and the denial of the balance credit was not sustained; the issue was decided in favour of the assessee.

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