TMI Blog2022 (10) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed form would not be filed on or before the due date of filing of the return no such credit would be allowed. Further by the amendment to the rule with effect from 1 April 2022, the assessee can file such form number 67 on or before the end of the assessment year. Therefore, legislature in its own wisdom has extended such date which is beyond the due date of filing of the return of income. Further , the fact in the present case is quite distinct then the issue involved in the decision of the honourable Supreme Court in case of Wipro Ltd [ 2022 (7) TMI 560 - SUPREME COURT] - Here it is not the case of violation of any of the provisions of the act but of the rule, which does not provide for any consequence, if not complied with. Therefore, respectfully following the decisions of the coordinate bench on this issue, we hold the assessee is eligible for foreign tax credit, as she has filed form number 67 before completion of the assessment, though not in accordance with rule 128 (9) of The Income Tax Rules, which provided that such form shall be filed on or before the due date of filing of the return of income. Accordingly, ground number 2 of the appeal of the assessee is allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r claiming the foreign tax credit. 03. Assessee is in individual who is an actor acting in films and provides services for promotion and marketing of brands of goods, services, and events. 04. Assessee filed her return of income on 22/9/2018 at total income of ₹ 185,390,330/ . The case was selected for scrutiny under the limited scrutiny criteria for the issue of double taxation relief u/s 90/91. The requisite notice u/s 143 (2) of the act was issued. 05. The learned AO found that assessee has claimed foreign tax credit amounting to ₹ 2,921,327/ however from the filing portal it was noted that assessee has uploaded form number 67 for claiming foreign tax credit on 20/1/2020. Fact that assessee has filed her return of income on 22/09/2018, within the due date as per provisions of Section 139 (1) of the act. Thus, the issue is that form number 67, required to be filed for claiming foreign tax credit on or before the date of filing of the return terms of rule 128 (9) of the Income Tax Rules 1962, was filed belatedly. This is also confirmed by notification number 9 on 19 September 2017. Therefore the AO was of the view that assessee has failed to comply with lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of furnishing the return of income is mandatory. It also rejected the claim of the assessee that such form can be filed at any time, for the reason that it does not have any logical legal background and such an interpretation would make the rule absurd. It also held that all the beneficial provision should be interpreted strictly as held by Honourable Supreme Court in 116 taxmann.com 885. Accordingly, the appeal of the assessee was dismissed. 08. Assessee aggrieved with the same has preferred appeal before us. The learned authorised representative filed a paper book. He submitted that this issue is squarely covered in favour of the assessee by the decision of Brinda Ramakrishna versus ITO and 42-Hertz software India private limited versus ACIT. He submitted that the claim of the assessee was made in the return of income but form number 67 as mandated by the rules and not the act, which is required to be filed on or before the due date of filing of the return of income, is directory in nature. Even otherwise, at the time of making, the assessment such form was available before the assessing officer and therefore the tax credit should not have been denied. 09. The learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the completion of the assessment proceedings. Precisely, the fact shows that assessee filed return of income u/s 139 (1) of the income tax act. In such a return of income, she claimed the foreign tax credit. However, form number 67 was filed during the course of assessment proceedings and not before the due date of filing return. Rule 128 (9) of the Income Tax Rules 1962 provides that the statement in Form No. 67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section 139, in the manner specified for furnishing such return of income. We find that coordinate bench in 42 Hertz Software India (P.) Ltd v. ACIT [2022] 139 taxmann.com 448 (Bangalore - Trib.) wherein following its earlier order in the case of Ms. Brinda Rama Krishna v.ITO [2022] 135 taxmann.com 358 (Bang - Trib) it was held that one of the requirements of Rule128 for claiming FTC is that Form 67 is to be submitted by assessee before filing of the returns and that this requirement cannot be treated as mandatory, rather it is directo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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