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2022 (12) TMI 525 - AT - Income TaxRelief u/s. 90 - Foreign Tax Credit (FTC) - Appellant had filed the return of income and the said Form 67 filed was late by 14 days from the due date of filing the return of income - As submitted that the delay was due to reasons beyond the control of the appellant, inasmuch as the Tax Deduction Certificates were received from the foreign deductor from Zambia belatedly, the said Form No.67 was filed belatedly by 14 days - HELD THAT:- We find the NFAC upheld the action of the AO, the reasons of which have already been reproduced in the proceeding paragraph. It is the submission of the ld.Counsel for the assessee that filing of foreign tax credit certificate in Form-67 is directory in nature and not mandatory and therefore the NFAC is not justified in denying the Foreign Tax Credit. In the case of M/s. 42 Hertz software India Pvt.Ltd [2022 (3) TMI 834 - ITAT BANGALORE] while deciding an identical issue has held that FTC cannot be denied to the assessee, where the assessee filed FTC in Form No.67, although belatedly since filing of such Form 67 is not mandatory but directory in nature. In the instant case, the delay in filing of the FTC certificate in Form-67 was explained to be due to non receipt of the tax deduction certificate form the foreign deductor from Zambia within time for which the said Form-67 was filed belatedly by 14 days. As stated that the tax jurisdiction of the Zambian deductor follow different period for taxing the income and have different due dates for filing the return as compared to India. So far as the decision relied on by ld. DR in the case of Muralikrishna Vaddi [2022 (6) TMI 693 - ITAT VISAKHAPATNAM] we find there is a delay of more than two years without any valid and reasonable cause. Therefore, the said decision in our opinion cannot be applicable to the facts of the present case. In any case, when there are two view possible, the view which is favourable to the assessee has to be followed as in the case of CIT vs. Vegetable Products Ltd.[1973 (1) TMI 1 - SUPREME COURT]. Since, the assessee in the instant case has filed FTC certificate in Form No.67 with delay of only ‘14’ days, therefore following the decision in the case of M/s. 42 Hertz Software India Pvt.Ltd.[2022 (3) TMI 834 - ITAT BANGALORE] we direct the AO to allow the FTC after due verification. Assessee Appeal are allowed.
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