Offsetting 25% dividend tax deducted under DTAA

Income Tax Act 1961
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Suppose one has 25% tax deducted under DTAA if one is investing directly in US stocks using any platform. Now can one use the tax 25% tax deducted here to offset any kind of tax liability while filing the Indian ITR? Say income from other sources, interest income, income from Indian mutual funds gains- both debt and equity and Indian stocks? Everything can be offset by it right?

The India based platforms like indmoney, passa etc. in their reports add a line that if one offsets India tax like this then their return goes for manual processing to an officer. Is this true?

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The 25% US dividend tax deducted can only be used to offset Indian tax attributable to that specific US dividend income, not any other domestic income or gains. While digital filing via Form 67 and Schedule TR allows automated processing, any discrepancy between your foreign disclosures and filings can attract closer scrutiny from the tax department.