TMI Blog2022 (12) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... - - Dated:- 1-12-2022 - Shri Om Prakash Kant, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Ratnesh Kumar Awasthi For the Revenue : Shri Chetan M. Kacha ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the assessee against the impugned order dated 19/07/2022, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ learned CIT(A) ], which in turn arose from the intimation dated 08/03/2021, issued under section 143(1), for the assessment year 2019-20. 2. In this appeal, the assessee has raised the following grounds: 1. The order passed by the Ld. CIT(A) under section 250 of the Income Tax Act ( The Act ) is a vitiated order as both, the Dy./Asst. Commissioner of Income Tax, CPC, Bangalore ( the Ld. AO )/Ld. CIT(A), on the facts and in law, has erred in denying the claim of tax credit under section 91 of the Act amounting to Rs. 11,79,796/- claimed by the Appellant via filing of Form 67 as per Rule 128 of the Income Tax Rules, 1962 ( The Rules ). 2. That the NFAC has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is in appeal before us. 5. During the hearing, the learned Authorised Representative ( learned A.R ) submitted that the assessee is an old lady of about 84 years of age. The assessee received some income from the Company headed by her brother on which tax was already paid in Ghana. Due to the death of her brother, the repatriation of money was delayed due to some paperwork and the assessee was unable to file Form No.67 within the prescribed due date. Upon receipt of Form No. 67, the assessee filed a revised return of income under section 139(5) of the Act and claimed the foreign tax credit of Rs. 11,79,796. The learned AR submitted that the revised return of income was filed within the extended time provided under the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, and notifications issued thereunder by the CBDT. Learned AR also submitted that provisions of section 90/91 of the Act are substantive provisions and the provisions of Rule 128 of the Income Tax Rules, 1962, cannot override the same. Learned AR placed reliance upon certain decisions of the coordinate bench of the Tribunal in support of its submissions. 6. On the contrary, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the Income-tax (Twenty-seventh Amendment) Rules, 2022, w.r.e.f. 01/04/2022 and the same reads as under: (9) 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 end of the assessment year relevant to the previous year in which the income referred to in sub-rule (1) has been offered to tax or assessed to tax in India and the return for such assessment year has been furnished within the time specified under sub-section (1) or sub-section (4) of section 139: 9. Thus with effect from 01/04/2022, the time period for furnishing statement in Form No. 67 has been extended till the end of the assessment year in which the corresponding income has been offered/assessed to tax and the return of such assessment year has been furnished within the time specified under 139(1) or 139(4) of the Act. 10. We find that the coordinate bench of the Tribunal in Sonakshi Sinha vs CIT, in ITA No. 1704/Mum./2022, vide order dated 08/09/2022, while dealing with a similar issue wherein the taxpayer filed Form No.67, after the due date for filing the return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 128 (4) clearly provides the condition where the foreign tax credit would not be allowed. Rule 128 (9) does not say that if prescribed 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 (supra). 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 fili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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