2024 (10) TMI 1634 - AT - Income Tax

Denying Foreign Tax Credit claimed by the assessee u/s 90 - denial for want of filing of requisite Form 67 along with return of income - HELD THAT - We find that the issue of foreign tax credit is covered in assessee s favor by the decision of this Tribunal in the case of ITO vs. Smt. Chengam Durga 2024 (4) TMI 1227 - ITAT CHENNAI The bench considering the decision of case of Duraiswamy Kumaraswamy 2023 (11) TMI 1000 - MADRAS HIGH COURT held that filing of this form in terms of Rule 128 was only directory in nature. The rule is only for the implementation of the provisions of the act and it would always be directory in nature. Respectfully following the same we direct CIT(A) to grant impugned Foreign Tax Credit to the assessee after verifying Form No.67. Aappeal stand allowed for statistical purposes.

Summary

The Appellate Tribunal in ITAT CHENNAI ruled in favor of the appellant in an appeal for Assessment Year 2018-19 regarding the denial of Foreign Tax Credit. The issue arose from the non-filing of Form 67 along with the return of income, leading to the denial of the credit. The Tribunal held that the requirement of filing Form 67 was directory, not mandatory, citing previous decisions. Consequently, the Tribunal directed the Commissioner of Income Tax (Appeals) to grant the Foreign Tax Credit to the assessee after verifying Form No. 67. The appeal was allowed for statistical purposes.