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2023 (11) TMI 700 - AT - Income TaxForeign tax credit - belated submission of Form No. 67 which was mandatorily required to be filed before the filing of Income tax return - where Form 67 is filed belatedly even though the credit amount of all foreign tax credit has been claimed in the Income tax return whether the assessee is eligible to claim such FTC - HELD THAT - We notice that this issue had come up for adjudication before us in various other cases wherein also, the decision of other Tribunals have been cited and it has been consistently held that filing of From 67 is merely directory in nature and even if it is filed belatedly, the assessee deserves the FTC. We find support from the decision of Sonakshi Sinha vs. CIT 2022 (10) TMI 107 - ITAT MUMBAI and Satreena Consultants Pvt. Ltd., Kolkata v. ITO 2023 (2) TMI 1154 - ITAT KOLKATA We are thus inclined to hold that the ld. CIT(A) has rightly allowed the claim of FTC - Ground raised by the revenue is dismissed.
Issues involved:
The appeal by the revenue against the order of the National Faceless Appeal Centre for the Assessment Year 2020-21. Delay in filing the appeal by the revenue and the condonation of the delay. The main issue is the claim of foreign tax credit of Rs. 3,66,855/- denied due to belated submission of Form No. 67. Delay in Filing Appeal and Condonation: The Registry pointed out a 2-day delay in filing the appeal by the revenue. The revenue submitted a petition for condonation of delay, explaining the reasons. After perusing the petition, the Tribunal was convinced that there was sufficient cause for the delay, thus condoning it and admitting the appeal for hearing. Grounds of Appeal: The revenue raised grounds questioning the justification of allowing the appeal of the assessee for statistical purpose. The issue was regarding the claim of foreign tax credit of Rs. 3,66,855/- and the mandatory requirement of filing Form No. 67 before the income tax return. Tax Effect and Merits of the Case: The counsel for the assessee argued that due to low tax effect, as per CBDT Circular No. 17/2019, the appeal should be dismissed. However, the revenue contended that the issue raised falls under the exception mentioned in the circular as it pertains to the constitutional validity of Act or Rule. The Tribunal found merit in the revenue's contention and held that the appeal should not be dismissed based on low tax effect. Foreign Tax Credit Issue: The core issue revolved around the denial of foreign tax credit of Rs. 3,66,855/- to the assessee due to belated submission of Form No. 67. The assessee, a salaried employee sent on assignment to the USA, claimed this credit in the Indian income tax return. Despite the belated filing of Form 67, the Tribunal, based on precedents and decisions from other cases, held that the filing of Form 67 is directory in nature. The Tribunal cited previous cases to support the decision that even if Form 67 is filed belatedly, the assessee is eligible for the foreign tax credit. Consequently, the Tribunal dismissed the appeal of the revenue, upholding the allowance of the foreign tax credit. Conclusion: The Tribunal dismissed the appeal of the revenue, pronouncing the order on 31st October 2023 in Kolkata.
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