2023 (8) TMI 1540 - AT - Income Tax

Disallowance on account of late deposit of employees contribution of provident fund - HELD THAT - The impugned issue is fully covered in the case of Checkmate Services Private Limited 2022 (10) TMI 617 - SUPREME COURT But the contention of the Counsel is that the date of payment of the salary should be considered for calculating the delay in the deposit of EPF/ESI under the respective acts therefore in the interest of justice and fair play we deem it fit to restore this quarrel to the files of the AO - AO is directed to consider the date of payment of salaries and decide the issues afresh as per the provisions of the law. This common grievance is allowed for statistical purpose. Denial of foreign tax credit - assessee has filed Form-67 beyond the due date in respect of the claim of foreign tax credit - HELD THAT - It is also not in dispute that one of the requirements of rule 128 for claiming FTC is that Form-67 is to be submitted by assessee before filing of the return. In our humble opinion this requirement cannot be treated as mandatory and it is directory in nature for the simple reason that under rule 128(9) there is no provision for disallowance of FTC in case if there is a delay in filing Form-67. In our considered opinion this is only a procedure delay and there is no negative or adverse consequence provided for non adherence to such procedure. Since in the present case the claim of the assessee was denied on this technical aspect without going into the merits of the FTC therefore we deem it fit to restore the issue to the files of the AO. AO is directed to decide the claim of foreign tax credit as per the provisions of the law after admitting/accepting form-67. This common grievance is also allowed for statistical purpose. Denial of TDS credit for punching incorrect TAN by the assessee in its return of income - HELD THAT - We have gone through the orders of the authorities below. We are of the considered view that the TDS credit should not have been denied for such technical reason when the TDS credit is duly reflected in form 26AS therefore we direct the AO to allow the credit of TDS reflected in Form 26AS as per the provision of the law.

Summary

The ITAT Delhi allowed the appeals by the assessee against NFAC orders for A.Y. 2018-19, 2019-20, and 2020-21. The disallowance on late deposit of employees' provident fund contribution was sent back to the AO for reconsideration based on the date of salary payment. Foreign tax credit denial was overturned as the Form-67 filing delay was considered procedural. TDS credit denial for incorrect TAN entry was reversed as the credit was reflected in Form 26AS. The appeals were allowed for statistical purposes. (Judgment date: 18.08.2023)