ITA 200/BANG/2026

Parties Involved

Facts Summary

The assessee, SANJEEV SIVASANKARAN MENON, had declared salary income of Rs. 87,15,849/- and income from other sources of Rs. 13,54,444/-. The income from other sources included dividend income of Rs. 7,17,560/- received from shares of a US company allotted to the assessee under ESOP. The assessee had paid tax of Rs. 1,79,378/- in the USA on the said dividend income. The assessee claimed credit for taxes paid in the USA in the ROI. However, while processing the return u/s 143(1) of the Act, the CPC denied the benefit of foreign tax credit. The assessee subsequently filed Form No. 67 on 16.08.2023 and also filed an application for rectification u/s 154 of the Act. The said application was rejected vide order dated 20.11.2023. Aggrieved by the rejection of the claim, the assessee filed an appeal before the Ld. CIT(A) and submitted that the tax had actually been paid in the USA on the dividend income which was also offered to tax in India.…

Legal Issues

• 1. Whether the denial of Foreign Tax Credit of Rs. 1,79,378/- in respect of tax paid in the USA on dividend income received from shares allotted under the Employee Stock Option Plan (ESOP) is correct?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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