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2023 (3) TMI 662 - AT - Income TaxDenial of Foreign Tax Credit (FTC) - assessment was selected for limited scrutiny regarding “foreign financial interest”- AO did not allow the credit for FTC on the ground that the assessee did not furnish form 67 on or before filing return of income within the prescribed due date u/s 139(1) as required under Rule 128 of I.T. Rules - CIT(A) confirmed the view taken by the AO and held that failure to comply with the mandatory requirements under Rule 128 of I.T. Rules and non filing of Form 67 within the due date prescribed under Section 139(1) of the Act cannot be condoned - HELD THAT:- As stated that this was a bona fide mistake and the said dividend income has already been taxed outside India. It is claimed that since the due date for filing the revised return of income was lapsed the assessee could not file the revised return of income. However, she recomputed the total income and filed Form 67. The assessee had also duly remitted the tax on the said income and requested the AO to allow the due FTC. The same has been denied solely for the reason that Form 67 has not been filed within the due date prescribed for filing return under Section 139(1) of the Act. This issue is no longer res-integra and the same is covered in favour of the assessee by the coordinate bench order of the Tribunal in the case of Shashidhar Seetharam Sharma[2022 (9) TMI 1430 - ITAT BANGALORE] The coordinate bench order of the Bangalore Tribunal had considered other coordinate benches orders and had held that (i) Rule 128(9) of the Rules does not provide for disallowance of FTC in case of delay in filing Form No. 67; (ii) filing for Form No. 67 is not mandatory but a directory requirement and (iii) DTAA overrides the provision of the Act and the rules cannot be contrary to the Act. It was concluded by the Tribunal that non-furnishing of Form No. 67 before the due date under Section 139(1) of the Act is not fatal to the claim for FTC. We direct the AO to allow the claim of FTC. Appeal filed by the assessee is allowed.
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