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2023 (5) TMI 1286 - AT - Income TaxRelief u/s 90 - foreign tax credit - Disallowing the relief of tax paid in Republic of Korea on delay in filing of Form 67 - HELD THAT - Above finding of the Tribunal in SONAKSHI SINHA case 2022 (10) TMI 107 - ITAT MUMBAI is squarely applicable on the facts of the case in hand and the same remains uncontroverted by the ld. D/R by way of placing reliance on any other binding precedents in its favour. We, therefore, respectfully following the same, are inclined to hold that the Assessing Officer ought not to have denied the relief u/s 90 of the Act merely for delay in filing of Form 67. Thus, effective ground of the assessee is allowed.
Issues involved:
The appeal involves the denial of relief of tax paid in Republic of Korea under Article 23(a)(i) in DTAA with Republic of Korea, claimed u/s 90 of the Income-tax Act, 1961. Details of the judgment: The appellant, an individual, filed the appeal against the order of the National Faceless Appeal Centre passed u/s 250 of the Act for the Assessment Year 2020-21. The main contention was the denial of tax relief of Rs.3,50,106/- paid in Republic of Korea and claimed u/s 90 of the Act. The appellant was employed in South Korea from 16/04/2018 to 08/09/2019. The relief was denied as Form No. 67 was not filed before the due date of filing the return u/s 139(1) of the Act. The appellant argued that the filing of Form No. 67 is directory, not mandatory, citing a decision of the Coordinate Bench. The Tribunal held that the denial of relief solely for the delay in filing Form 67 was not justified. It was noted that the conditions for claiming foreign tax credit were not violated, and the requirement of filing Form 67 before the due date was directory in nature. The Tribunal relied on previous decisions and allowed the appellant's claim for foreign tax credit. The appeal was allowed based on this finding. The Tribunal's decision was based on the principle that if no adverse consequences are specified for non-adherence to a procedure, it is considered directory. The appellant's eligibility for foreign tax credit was upheld as Form No. 67 was filed before the completion of the assessment proceedings, even though not in accordance with Rule 128(9) of the Income Tax Rules. The appellant's appeal was allowed, and the order was pronounced in Kolkata on 9th May, 2023.
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