2023 (7) TMI 1442 - AT - Income Tax

Denial of foreign tax credit - Form No. 67 was not filed along with the return of income as well as on the ground that wrong assessment year was mentioned in Form No. 67 as assessment year 2020-21 instead of assessment year 2021-22 - NFAC allowed the grounds of appeal filed by the assessee - HELD THAT - NFAC ought not to have granted the relief without calling for a remand report from the Assessing Officer/CPC. Thus, the order of the NFAC was passed in gross violation of principles of natural justice as well as without adverting to the full facts of the case. In the circumstances, we are of the considered opinion that ends of justice would be met if the order of the NFAC is set-aside to the file of the NFAC with a direction that the issues in appeal shall be adjudicated afresh after affording reasonable opportunity of being heard to the assessee. Thus, the grounds of appeal filed by the Revenue stand partly allowed for statistical purposes.

Summary

The Revenue appealed against NFAC's order for the assessment year 2021-22 regarding foreign tax credit. NFAC allowed the appeal filed by the assessee without considering all facts, violating principles of natural justice. The order was set aside for reassessment. The appeal by the Revenue was partly allowed for statistical purposes.