2023 (12) TMI 1307 - AT - Income Tax

Foreign tax credit u/s 90 - belated filling of Form No. 67, i.e. within the due date of filing of return of income prescribed under section 139(1) - claim made with revised return of income - HELD THAT - As decided in Sonkashi Sinha 2022 (10) TMI 107 - ITAT MUMBAI here it is not the case of violation of any of the provisions of the act but of the rule, which does not provide for any consequence, if not complied with. Therefore, we hold the assessee is eligible for foreign tax credit, as she has filed form number 67 before completion of the assessment, though not in accordance with rule 128 (9) of The Income-tax Rules, which provided that such form shall be filed on or before the due date of filing of the return of income. Thus Appellant would be eligible to foreign tax credit where Form No. 67 is filed before the completion of assessment for the relevant assessment year. Thus 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 - Ground No. 1 raised by the Appellant is allowed for statistical purposes.

Summary

Issues involved:
The appeal challenges the order passed by the Ld. Commissioner of Income Tax (Appeals) regarding the denial of relief under Section 90 of the Income Tax Act and the consequential levy of interest under Section 234B and 234C of the Act for the Assessment Year 2020-2021.

Relief u/s 90 of the Act denied:
The Appellant contested the denial of relief under Section 90 of the Act, claiming that the Form 67 was filed along with the revised return of income, and thus the relief should not have been denied. The CIT(A) upheld the denial citing the failure to file Form 67 before the due date of filing the return of income. However, the Tribunal, following judicial precedents, remanded the issue back to the Assessing Officer to grant foreign tax credit to the Appellant as per the previous decisions, as Form No. 67 was filed before the completion of the assessment for the relevant assessment year.

Consequential levy of interest u/s 234B and 234C of the Act:
The Appellant challenged the confirmation of the levy of interest under Section 234B and 234C of the Act, arguing that the amounts levied were higher than what was stated in the revised return of income. The Tribunal directed the Assessing Officer to re-compute the interest under Section 234B and 234C of the Act in accordance with the law.

General:
The third ground raised by the Appellant was of a general nature and was disposed of accordingly. The Tribunal allowed the appeal for statistical purposes, with the first ground being allowed for the Appellant's benefit, and the second ground being disposed of as consequential. The order was pronounced on 22.12.2023.