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2023 (7) TMI 1342 - ITAT KOLKATARectification u/s 154 - claim of foreign tax relief disallowed as claimed u/s 90/90A - delayed filing of Form-67 by way of foreign tax credit - assessee is an employee in India since 1999 and was transferred to UK in May, 2008 and worked there till September, 2020. Thereafter the assessee was again transferred to India. The assessee got benefits from the employer in the form of equity shares granted to her under Employee Stock Option Plan (in short ‘ESOP’) and restricted stock. These stocks got vested over a period of four years if the assessee worked for the said employer company under ESOP. HELD THAT:- Assessee served abroad and some foreign tax was deducted in United Kingdom under DTAA between India and UK and provision of Section 90(2) of the Act. We also note that Rule 128 sub-Rule 9 provides that Form-67 should be filed on or before the due date of filing the return of income. However, we note that nowhere it is stated that in case of delayed filing of Form-67 by way of foreign tax credit which is deducted from the assessee in foreign country i.e. U.K. would be denied. Accordingly, we are of the considered view that the assessee is entitled to get this foreign tax credit u/s 90 of the Act. We also note that the claim in respect of foreign tax was allowed in the order passed u/s 143(1) of the dated 28.03.2019 and was withdrawn by the AO by passing order u/s 154 of the Act when the assessee filed form 67 before the AO. In our opinion the credit in respect of foreign tax cannot be denied to the assessee for the technicality of not filing the form 67 within the due date of return u/s 139(1) - Appeal filed by the assessee is allowed.
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