TMI Blog2022 (12) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 128. Non-furnishing of Form No. 67 within the due date of furnishing of return of income as specified under Section 139(1) of the Act, we have noted in case of M/s. 42 Hertz Software India (P) Ltd. [ 2022 (3) TMI 834 - ITAT BANGALORE] has held that the rule prescribed under Rule 128(9) of the Act cannot be treated as mandatory but is directory in nature as the said Rule does not provide for disallowance of foreign tax credits in case of delay in filing Form No.67. That being the legal position, we hold that assessee s claim of foreign tax credits cannot be disallowed merely on the reasoning that Form No. 67 was filed beyond the due date of furnishing of return under Section 139(1) of the Act. This view also get fortified by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee is against disallowance of foreign tax credits amounting to Rs.6,42,677. 3. Briefly, the facts are, assessee is a resident individual stated to be deriving income by way of pension and annuity received from United States of America. In the impugned assessment year, assessee received pension and annuity amounting to Rs.22,14,620. 4. In the return of income filed on 15.03.2020 for the impugned assessment year, assessee offered the income received from pension and annuity. As against the income offered, assessee claimed foreign tax credits of Rs.6,42,677, being the amount of tax paid in United States on the income earned. Further, in compliance with the provisions of the Act, assessee filed Form No. 67 on 11.03.2020 claimi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He submitted, the condition prescribed under Rule 128(9) cannot be considered to be mandatory in nature. In this context, he relied upon a decision of the Tribunal in case of M/s. 42 Hertz Software India (P) Ltd. vs. ACIT in ITA No.29/Bang./2021 dated 07.03.2022. Further, he drew our attention to Notification No.100/2022/F.No.370142/35/2022-TPL dated 18.08.2022 issued by the Central Board of Direct Taxes (CBDT) and submitted that sub-rule (9) of Rule 128 of the Act has been amended w.e.f. Ist April,2022 by substituting the old provisions with the following: (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome for the impugned assessment year on 15.03.2020. Whereas, Form No.67 claiming foreign tax credits was furnished on 11.03.2020. Learned Commissioner (Appeals) has disallowed foreign tax credits, primarily, for non-fulfillment of conditions prescribed under sub-Rule (8) and(9) of Rule 128. In so far as, non-furnishing of Form No. 67 within the due date of furnishing of return of income as specified under Section 139(1) of the Act, we have noted, the co-ordinate Bench in case of M/s. 42 Hertz Software India (P) Ltd. vs. ACIT (supra) has held that the rule prescribed under Rule 128(9) of the Act cannot be treated as mandatory but is directory in nature as the said Rule does not provide for disallowance of foreign tax credits in case of delay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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