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TMI Blog2024 (2) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,40,939/- being Foreign Tax Credit claimed by the assessee by way of tax relief u/s 90 of the I.T. Act, 1961. 6. Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 28.12.2020 declaring total income of Rs.34,80,550/- and claimed tax relief u/s 90/90A as Foreign Tax Credit (FTC) of Rs.4,40,939/-. The CPC did not allow the claim of FTC of Rs.4,40,939/- at the time of processing the return of income u/s 143(1) of the I.T. Act dated 24.12.2021. The assessee filed Form No.67 to claim the credit for FTC by way of petition on 30.12.2021. Since no action was taken till July, 2022, the assessee again filed Form No.67 on 7.7.2022. Thereafter, the assessee filed a rectification petition u/s 154 on 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is restored to the file of the Assessing Officer with similar direction to allow the FTC after due verification. 10. The learned DR, on the other hand, heavily relied on the order of the Assessing Officer and the learned CIT (A) NFAC. 11. We have heard the rival arguments made by both the sides, perused the orders of the AO and the learned CIT (A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us by both sides. We find the AO in the instant case rejected the 154 rectification application filed u/s 154 of the I.T. Act, 1961 on the ground that Form 67 was not furnished before the due date as prescribed u/s 139(1) in compliance to Rule 128(9). We find the learned CIT (A) NFAC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced in the preceding paragraph. We find an identical issue had come up before the Coordinate Bench of the Tribunal in the case of Shri Baburao Atluri (Supra) wherein the Tribunal, after considering various decisions, has allowed the foreign tax credit, although there was delay in filing of such Form 67 beyond the due date of filing of the return. Relevant observation of the Tribunal from Para 10 onwards read as under: "10. We have heard the rival arguments made by both the sides, perused the orders of the AO and NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the AO in the instant case did not allow the Foreign Tax Credit (FTC) on the ground that Form No.67 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Ld.AO to consider the claim of assessee in accordance with law, based on the verification carried out in respect of the supporting documents filed by assessee. Accordingly, the grounds raised by assessee stands allowed for statistical purposes." 12. We further find, in the instant case, the del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer to allow the foreign tax credit of Rs.58,69,594/- after due verification. Grounds raised by the assessee are accordingly allowed." 13. Respectfully following the decision of the Coordinate Bench of the Tribunal in the case of Govind Rajulu Dhondu (Supra) we restore the issue to the file of the Assessing Officer with similar direction to allow the FTC of Rs. 4,40,939/- after due verification. Needless to say the Assessing Officer shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. 14. In the result, appeal filed by the assessee is allowed for statistical purp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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