2024 (11) TMI 1428 - AT - Income Tax

Denial of Foreign Tax Credit u/s 90 - claim denied 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 considering the decision 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. Thus we direct Ld. CIT(A) to grant impugned Foreign Tax Credit to the assessee after verifying Form No.67.

Summary

The appellate tribunal in Chennai heard appeals by the assessee regarding the allowance of foreign tax credit for the Assessment Years 2018-19 and 2019-20. The appeals were heard in the absence of the appellant, with the assistance of the departmental representative. The appeal for AY 2018-19 stemmed from an order denying Foreign Tax Credit claimed by the assessee due to a belated filing of Form 67. The tribunal found in favor of the assessee, citing a previous decision where the filing of Form 67 was considered directory in nature. As a result, the tribunal directed the granting of the Foreign Tax Credit to the assessee after verifying Form No. 67.The decision regarding AY 2019-20 mirrored that of AY 2018-19, and both appeals were allowed for statistical purposes.