TMI Blog2023 (1) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... due to recurrence of COVID-19 and drastic surge in number of COVID cases across the country, the Hon'ble Supreme Court again, vide order dated 10.01.2022, restored its earlier order extending the period of limitation and observed that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purpose of limitation and all persons shall have a limitation period of 90 days from 01.03.2022 to comply with legal requirements. Thus, in view of the aforesaid decision of Hon'ble Supreme Court, it has to be concluded that the assessee has filed Form 67 within the extended period of limitation as per the order of Hon'ble Supreme Court. That being the case, assessee s claim of foreign tax credit has to be allowed. Thus 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 of the appeal of the assessee is allowed. - ITA No. 1869/Del/2022 - - - Dated:- 11-1-2023 - SHRI G. S. PANNU , PRESIDENT AND SHRI SAKTIJIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit. 6. We have heard Shri K. Sampath, learned counsel appearing for the assessee and Shri Sanjay Kumar, Departmental Representative. 7. It is the say of the assessee that on account of restriction imposed due to COVID-19, the Hon'ble Supreme Court extended the period of limitation in filing petition/suits/applications/appeals/all other proceedings, initially up to 08.03.2021. Thereafter, again, due to spread of new variant of COVID-19, the Hon'ble Supreme Court took suo motu cognizance and restored the order dated 23.03.2020 extending the period of limitation and held that period from 15.03.2020 till 28.02.2022 shall stand excluded for the period of limitation. Thus, he submitted, in view of the aforesaid decision of the Hon'ble Supreme Court, Form 67 filed by the assessee cannot be held to be barred by limitation. 8. Without prejudice, he submitted, the Tribunal in a number of cases has held that the provision contained in Rule 128(9) does not provide for disallowance of foreign tax credit in case of delay in filing Form 67 and further, filing of Form 67 is not mandatory but a directory requirement. In support of such contention, learned counsel relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es across the country, the Hon'ble Supreme Court again, vide order dated 10.01.2022, restored its earlier order extending the period of limitation and observed that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purpose of limitation and all persons shall have a limitation period of 90 days from 01.03.2022 to comply with legal requirements. Thus, in view of the aforesaid decision of Hon'ble Supreme Court, it has to be concluded that the assessee has filed Form 67 within the extended period of limitation as per the order of Hon'ble Supreme Court. That being the case, assessee s claim of foreign tax credit has to be allowed. 13. Even, otherwise also, the assessee has a strong case on merit as well. In case of M/s.Brinda Ramakrishnan vs. ITO, supra, the Tribunal while dealing with an identical issue has held as under: 16. I have given a careful consideration to the rival submission. I agree with the contentions put forth by the learned counsel for the Assessee and hold that (i) Rule 128(9) of the Rules does not provide the disallowance of FTC in case of delay in filing Form No. 67; (ii) filing of Form No. 67 is not mandatory but a directory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filed according to the provisions of rule 128 (9) of the Income 012. We have carefully considered the rival contention and perused the orders of the lower authorities. Short question in this appeal is whether assessee is entitled to foreign tax credit even when form number 67 required to be filed according to the provisions of rule 128 (9) of the Income Tax Rules on or before the due date of filing of the return of income, not complied by the assessee, but same was filed before 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 ret ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
