TMI Blog2024 (3) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 31/10/2019 being the extended due date for filing of the return of income for that assessment year. In the impugned Intimation U/s. 143(1) of the Act passed on 13/3/2021 and the written submissions filed by the Ld. AR, we find that Form-67 was submitted on 17/2/2021. There is no dispute on the fact that Form-67 has been filed before the generation of Intimation U/s. 143(1) of the Act. In the instant case, Form-67 was filed on 17/2/2021 while the intimation U/s. 143(1) was passed on 13/3/2021. The facts of the case decided in Duraiswamy Kumaraswamy [ 2023 (11) TMI 1000 - MADRAS HIGH COURT ] are squarely applicable to the facts of the instant case wherein held returns were filed without FTC, however the same was filed before passin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly, the assessee filed the Form-67 online but the CPC Bangalore did not consider the same and passed the intimation U/s. 143(1) of the Act on 13/02/2021 wherein the Ld. AO invoked the provisions of Rule 128(9) of the IT Rules, 1962 and disallowed the foreign tax credit amounting to Rs. 2,83,87,928/- for non-filing of Form-67 before the due date of filing of the return of income U/s. 139(1) of the Act. Aggrieved by the order of the Ld.AO, the assessee filed an appeal before the Ld. CIT (A)-NFAC. On appeal, the Ld. CIT(A)-NFAC discussed the issue at length vide paras 6.1, 6.2 6.3 of his order and directed the Ld. AO to accept Form 67 with regard to the relief sought by the assessee and allowed ground raised by the assessee. While granting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that debatable disallowances cannot be made through intimation U/s. 143(1) of the Act. It was further submitted by the Ld. AR that the assessee filed its return of income on 31/10/2019 being the extended due date for filing of return of income for the AY 2019-20 by claiming Foreign Tax Credit of Rs. 2,83,87,928/-. Further, the Ld. AR submitted that the assessee has filed its Form-67 on 17/2/2021. The Ld. AR further submitted that Form-67 even though filed belatedly, it was filed before the passing of intimation U/s. 143(1) of the Act by the CPC, Bangalore. The Ld. AR referred to the Intimation U/s. 143(1) of the Act wherein the date of order is mentioned as 13/3/2021. It was further submitted that there was a delay in obtaining the Forei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .5834 of 2022 and W.M.P.Nos.5925 and 5927 of 2022, dated 06.10.2023 has held as under: 8. ....... 9. ....... 10. According to the learned counsel appearing for the respondent, the procedure under Rule 128 is mandatory and cannot be considered as directory in nature. The petitioner has filed his return including his Kenya income along with his Indian Income tax and claimed the benefits of FTC. However, the petitioner would submit that it is not mandatory. The Rule cannot make anything mandatory and it can be directory in nature, that too before the Assessment, the claim to avail the benefits of FTC is filed. Therefore, it would be the amounts to due compliance under the Act. The petitioner referred to the Judgment of the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the FTC was rejected by the respondent, which is not proper and the same is not in accordance with law. Therefore the impugned order is liable to be set aside. 13. Accordingly the impugned order dated 25.01.2022 is set aside. While setting aside the impugned order, this Court remits the matter back to the respondent to make reassessment by taking into consideration of the FTC filed by the petitioner on 02.02.2021. The respondent is directed to give due credit to the Kenya income of the petitioner and pass the final assessment order. Further, it is made clear that the impugned order is set aside only to the extent of disallowing of FTC claim made by the petitioner and hence, the first respondent is directed to consider only on the asp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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