TMI Blog2022 (9) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... ary received by the assessee which was not received but retained by the foreign employer for payment of foreign taxes. Therefore, once the payment has been included by the assessee in the income and taxed have been paid thereon, then this credit would certainly be available to the assessee. We order so. So far as filing of Form 67 the same has been held to be mere directory requirement by SMC bench of Bangalore Tribunal in MS. BRINDA RAMA KRISHNA [ 2022 (2) TMI 752 - ITAT BANGALORE] and M/S. 42 HERTZ SOFTWARE INDIA PVT. LTD. [ 2022 (3) TMI 834 - ITAT BANGALORE] It is the finding of Ld. CIT(A) that the assessee has already filed Form No.67 although belatedly. Therefore, we direct Ld. CIT(A) to verify the form and allow tax credit to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act On the facts and circumstances of the case and in law, the Ld. CIT (A) ought to have held that the non-grant FTC of Rs. 12,03,837 is not a permissible adjustment under Section 143(1) of the Act. It is prayed that the Ld. Assessing Officer be directed to allow the FTC of Rs. 12,03,837. The Appellant craves leave to add, amend, alter, substitute, withdraw all or any of the above Grounds of Appeal anytime either before or during the hearing of the Appeal. The Ld. AR, drawing attention to the factual matrix, relied on the decision of SMC bench of Bangalore Tribunal in Ms. Brinda Rama Krishna V/s ITO (ITA No.454/Bang/2021 order dated 17.11.2021). The Ld. Sr. DR submitted that tax credit could not be allowed since the same was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A. The total income was computed by assessee as under: Particulars Amount (Rs.) Salary for period 01 April 2017 to 02 October 2017 derived (accrued) in India and received in India 42,32,843 Salary for period 03 October 2017 to 31 March 2018 derived (accrued) in South Africa but received in India Perquisite as per Form 16 5,16,567 Perquisite outside India (i.e., taxes paid in SA) 12,03,837 Gross Salary as per computation 59,53,247 Less: Professional Tax (2,190) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the appellant filed the present appeal. Hence, the only relevant issue for adjudication is claim of Foreign Tax Credit in respect of tax paid by the appellant in South Africa on the income earned in that country. 5.2. The written submission filed by the appellant was carefully considered. It is pertinent to note that in the Form 16 issued by the Indian employer of the appellant, no amount was shown payable or refundable. The foreign employer has paid tax on behalf of the appellant. Though the appellant had filed an original return initially, subsequently on 29.03.2019, he filed a Form 67 for claiming Foreign Tax Credit. He also filed revised Income Tax Return. The Foreign Tax Paid by his employer was added by him as his perquisite. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has accepted the revised income of Rs.56.40 Lacs as filed by the assessee. The only dispute is with respect to FTC. The Ld. CIT(A) has noted that FTC has not been paid by the assessee but by his employer and therefore, no credit of the same could be granted to the assessee. However, we find that FTC has been offered by the assessee as perquisites in the gross total income and taxes have been paid thereon. Once this income has been offered to tax, the corresponding credit of the same would be available to the assessee. It could be seen in another perspective. Even if it is assumed that the assessee has not paid these taxes (as pleaded by Ld. Sr. DR) then it could be viewed as excess salary received by the assessee which was not received but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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