2024 (11) TMI 1101 - AT - Income Tax

Disallowance of Foreign Tax Credit (FTC) - delay of filing Form No. 67 - rectification order u/s 154 - HELD THAT - It is an undisputable fact that the assessee has paid taxes in India as well as abroad and the tax paid in the foreign country are eligible to be credited towards the total tax payments. Since the factum is not in dispute, delay in filing cannot prejudice the right of the assessee to claim Foreign Tax Credit (FTC). Keeping in view the specificities of the instant case, the Revenue is hereby directed to accord Foreign Tax Credit (FTC) to the assessee and carry out rectification. Appeal of the assessee is allowed.

Summary

The Assessee appealed against the order of the Commissioner of Income-tax (Appeals) regarding the denial of Foreign Tax Credit (FTC) due to delay in filing Form No. 67. The Appellate Tribunal directed the Revenue to allow the Foreign Tax Credit (FTC) to the assessee, stating that the delay in filing should not prejudice the right to claim the credit. The appeal of the assessee was allowed. (TMI Citation: Appellate Tribunal ITAT Ahmedabad)