9911796707
TMI Blog2025 (5) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... the sole grievance is that ld.CIT(A) erred in not allowing the Foreign Tax Credit (FTC) of Rs. 2,15,252/- sole on the ground of delay in filing of Form No.67 beyond the due date of filing the return. 3. Assessee has also raised the additional ground of appeal and the same reads as under : "The learned DDIT, CPC, Bengaluru erred in taxing dividend income of Rs. 8,61,084 received from USA based company at normal tax rate of 30% instead of special tax rate of 25% as per Article 10 of Indo-USA DTAA and therefore, the CPC/A.O. may be directed to compute tax @ 25% on the said dividend income of Rs. 8,61,084 received from foreign company." 4. At the outset, Ld, Counsel for the assessee submitted that the issue regarding not granting of FTC for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 108 (Madras) has held that filing of Form No.67 read with Rule 128 of the Income-tax Rules, 1962 is only directory in nature and not mandatory. Similar view has also been followed by this Tribunal in the case of Preeti Das (supra) placing reliance of the judgment of Hon'ble Madras High Court in the case of Duraiswamy Kumaraswamy (supra) Finding of this Tribunal in the case of Preeti Das (supra) is reproduced below : "7. We have heard both the parties and perused the material on record. The issue in the present appeal is that whether or not the CPC, Bangalore is justified in denying the credit for Foreign Tax paid for the reason that the Form No.67 was not filed within the due date for filing of the return of income as specified under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is justified in denying the credit for Foreign Tax paid for the reason that the Form No.67 was not filed within the due date for filing of the return of income as specified under the provisions of section 139(1) of the Income Tax Act, 1961 ('the Act'). Admittedly, in the present case, Form No.67 was not filed within the due date for filing of the return of income under the provisions of section 139(1), but Form No.67 was filed on 30.03.2021. The CPC, Bangalore had processed the return of income as on 24.12.2021, which means that Form No.67 was very much available with the CPC, Bangalore. Therefore, the CPC, Bangalore cannot deny the claim for credit for foreign tax paid merely because Form No.67 was not filed within the due date specified f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed : (a) 15 per cent of the gross amount of the dividends if the beneficial owner is a company which owns at least 10 per cent of the voting stock of the company paying the dividends. (b) 25 per cent of the gross amount of the dividends in all other cases. Sub-paragraph (b) and not sub-paragraph (a) shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such permanent establishment or fixed base. In such case the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services), as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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