TMI Blog2024 (5) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... orm No. 67 is filed before the completion of the assessment for the relevant assessment year. Assessee is eligible for claim of the foreign tax credit as Form NO. 67 has been filed by the assessee along with revised return of income on 28.03.2019 which is much before the processing of the return of income by CPC on 11.06.2020. We direct the AO to consider the claim of the assessee subject to the verification of the facts as mentioned above. The matter is accordingly restored to the file of AO for considering the claim of the assessee of the foreign tax credit as directed above. Appeal of the assessee is allowed for statistical purposes - Shri Om Prakash Kant (Accountant Member) And Shri Rahul Chaudhary (Judicial Member) For the Assessee : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olding the Order of the AO / CPC is incorrect, erroneous and not in accordance with the law. 1.3 The Appellant submits that the AO / CPC be directed to grant the relief u/s. 90 vis-a-vis the credit of foreign taxes paid of Rs. 3,33,695 and accordingly compute the total income and taxes thereon. 2. Re.: Interest u/s. 234B of the Act has been levied in excess: 2.1 The AO / CPC has erred in levying excessive interest u/s. 234B of the Income-tax Act, 1961. 2.2 The Appellant submits that considering the facts and circumstances of its case and the law prevailing on the subject, excessive interest has been levied u/s. 234B and hence the action of the AO /CPC upheld by the CIT(A) in this regard is incorrect, erroneous and not in accordance with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/- on salary income earned in Singapore , which subjected to tax both in Singapore and India. The assessee also filed Form No. 67 prescribed under Income-tax Rules, 1962 along with revised return on 28.03.2019. Before us, the assessee has filed a detail of salary and other income earned in Singapore and the taxes paid for the period from 01.12.2017 to 31.03.2018. The relevant detail is reproduced as under: 2.1 The revised return of income filed by the assessee was processed by the Centralized Processed Centre (CPC) on 11.06.2020. However, credit of FTC was not allowed to the assessee. Further, the assessee filed a rectification application before the CPC however, in the rectification order u/s 154 of the Act dated 31.05.2021 the claim of F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment year 2018-2019 and 2019-2020. The petitioner admitted the fact that he has filed his return in India on 10.08.2019. The intimation under Section 143(1) was issued on 26.03.2020. However, he has filed the return without Form-67 which is required to be filed under Rule 128 to claim the benefit of FTC and the same came to be filed on 02.02.2021 which was well before the completion of the assessment year. The intimation under Section 143(1) was issued from the CPC only on 26.03.2021. 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cases when the returns were filed without furnishing Form 3AA and the same can be filed the subsequent to the passing of assessment order. 12. Further, in the present case, the intimation under Section 143(1) was issued on 26.03.2021, but the FTC was filed on 02.02.2021. Thus, the respondent is supposed to have provided the due credit to the FTC of the petitioner. However, 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Hon'ble Madras High Court. 10. In the present case also Form No. 67 has been filed by the Appellant before processing the return of income under Section 143(1) of the Act. Therefore, respectfully following the above judicial precedents, we remand the issue raised in present appeal relating to claim of foreign tax credit back to the file of Assessing Officer with the direction to grant foreign tax credit to the Appellant as per the aforesaid decision after verification. Ground No. 1 raised by the Appellant is allowed for statistical purposes. 4.2 In view of the above precedents on the issue in dispute, we are of the considered opinion that assessee is eligible for claim of the foreign tax credit as Form NO. 67 has been filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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