Foreign tax credit under Article 24 directed back to Assessing Officer for factual and legal examination and decision.

Assessee claimed foreign tax credit for UK tax paid on employment income for F.Y. 2016-17 under Article 24 of the India UK DTAA; tribunal found supporting UK tax return and assignment documentation on record but held that entitlement requires factual and legal examination by the Assessing Officer under Article 24 and restored the matter for that examination, directing the assessee to furnish any requested information. Ground No. 1.4 was allowed for statistical purposes; remaining related grounds were kept open and one consequential ground required no separate adjudication.

---

---

Issues: Whether the assessee's claim for credit of taxes paid in the United Kingdom for the financial year 2016-17 should be examined and directed to be allowed by the Assessing Officer as per Article 24 of the India-UK Double Taxation Avoidance Agreement (Ground No. 1.4); consequential procedural disposition of the appeal.

Analysis: The assessee produced his UK tax return and related assignment documentation to show tax payment in the UK in respect of salary for services rendered in the UK. The Tribunal noted that the evidentiary material supporting the claim for foreign tax credit is on record and that the question of granting credit requires factual and legal examination by the Assessing Officer under Article 24 of the India-UK DTAA. The Tribunal therefore restored the matter to the file of the Assessing Officer for examination of the assessee's claim for credit, directing the assessee to furnish any information as may be sought by the Assessing Officer. The Tribunal expressly allowed Ground No. 1.4 for statistical purposes and kept Grounds Nos. 1.1 to 1.3 open in view of the assessee's alternate submissions; Ground No. 1.5 being consequential required no separate adjudication.

Conclusion: The assessee's Ground No. 1.4 is allowed for statistical purposes and the matter is restored to the Assessing Officer to examine and decide the claim for credit of taxes paid in the UK for F.Y. 2016-17 under Article 24 of the India-UK DTAA. The appeal is disposed of by the Tribunal as allowed for statistical purposes.

---