TMI Blog2023 (6) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... iling of the returns. In our view, this requirement cannot be treated as mandatory, rather it is directory in nature. This is because, Rule 128(9) does not provide for disallowance of FTC in case of delay in filing Form No.67. Since the facts of the instant case are identical to the facts of the case already decided by the Tribunal cited (Supra), respectfully following the said decision, we direct the AO to allow the FTC after due verification. Appeal filed by the assessee is allowed. - ITA No. 210/Hyd/2023 - - - Dated:- 31-5-2023 - Shri R.K. Panda, Accountant Member AND Shri K. Narasimha Chary, Judicial Member For the Assessee : Shri Ravi Bharadawaj, CA For the Revenue : Shri Kumar Aditya, DR ORDER PER R.K. PAND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) Income from salaries - Rs. 9,36,309 B) Capital Gain from Trading of shares: Rs. 6,79,307 C) Interest Dividend Income Rs. 5,01,939 D) Foreign Income Rs. 1,45,11,957 5. The assessee had filed his US Income Return and paid the taxes accordingly. While filing the Indian Income Tax Return, the assessee disclosed the above aforementioned foreign income and claimed Foreign Tax Credit which was paid in USA and accordingly filed Form No.67 on 24.2.2022. The CPC Bengaluru vide intimation u/s 143(1) dated 10.11.2022 did not consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious decisions cited before us by both sides. We find the AO /CPC in the instant case did not allow FTC on the ground that Form 67 has been filed on 24.2.2022 which is beyond the statutory due date of filing of the return. We find the CIT(A)/NFAC upheld the action of the AO/CPC on the ground that the assessee has not complied with the mandatory condition as mentioned in sub-rule (8) and (9) of the Rule 128 of the I.T. Rules and the delay in submission of Form 67 does not stand condoned. We find an identical issue had come up before the Tribunal in the case of Baburao Atluri vs. DCIT (Supra) and the Tribunal vide order dated 22.07.2022 while deciding the issue in favour of the assessee has observed as under: 10. We have heard the rival ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is because, Rule 128(9) does not provide for disallowance of FTC in case of delay in filing Form No.67. This view is fortified by the decision of coordinate bench of this Tribunal in case of Ms. Brinda Kumar Krishna vs. ITO in ITA no.454/Bang/2021 by order dated 17/11/2021. 7. It's a trite law that DTAA overrides the provisions of the Act and the Rules, as held by various High Courts, which has also been approved by Hon'ble Supreme Court in case of Engineering Analysis Centre of Excellence (P.) Ltd. reported in (2021) 432 ITR 471. 8. We accordingly, hold that FTC cannot be denied to the assessee. Assessee is directed to file the relevant details/evidences in support of its claim. We thus remand this issue back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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