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TMI Blog2022 (9) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... as not paid these taxes (as pleaded by Ld. Sr. DR) then it could be viewed as excess salary received by the assessee which was not received but retained by the foreign employer for payment of foreign taxes. Therefore, once the payment has been included by the assessee in the income and taxed have been paid thereon, then this credit would certainly be available to the assessee. We order so. So far as filing of Form 67 the same has been held to be mere directory requirement by SMC bench of Bangalore Tribunal in MS. BRINDA RAMA KRISHNA [ 2022 (2) TMI 752 - ITAT BANGALORE] and M/S. 42 HERTZ SOFTWARE INDIA PVT. LTD. [ 2022 (3) TMI 834 - ITAT BANGALORE] It is the finding of Ld. CIT(A) that the assessee has already filed Form No.67 although belate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct On the facts and circumstances of the case and in law, the Ld. CIT (A) ought to have held that the non-grant FTC of Rs. 12,03,837 is not a permissible adjustment under Section 143(1) of the Act. It is prayed that the Ld. Assessing Officer be directed to allow the FTC of Rs. 12,03,837. The Appellant craves leave to add, amend, alter, substitute, withdraw all or any of the above Grounds of Appeal anytime either before or during the hearing of the Appeal. The Ld. AR, drawing attention to the factual matrix, relied on the decision of SMC bench of Bangalore Tribunal in Ms. Brinda Rama Krishna V/s ITO (ITA No.454/Bang/2021 order dated 17.11.2021). The Ld. Sr. DR submitted that tax credit could not be allowed since the same was not paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income was computed by assessee as under: Particulars Amount (Rs.) Salary for period 01 April 2017 to 02 October 2017 derived (accrued) in India and received in India 42,32,843 Salary for period 03 October 2017 to 31 March 2018 derived (accrued) in South Africa but received in India Perquisite as per Form 16 5,16,567 Perquisite outside India (i.e., taxes paid in SA) 12,03,837 Gross Salary as per computation 59,53,247 Less: Professional Tax (2,190) Taxable salary as per ROI 59,51,057 Loss from house property (1,65,602) Income from other sources 13,921 Gross Total Income 57,93,376 Less: Chapter VIA deduction (1,58,575) Taxable Income (Rounded off) as per ROI 56,40,800 Though, the same income was computed by CPC, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the appellant had filed an original return initially, subsequently on 29.03.2019, he filed a Form 67 for claiming Foreign Tax Credit. He also filed revised Income Tax Return. The Foreign Tax Paid by his employer was added by him as his perquisite. In this revised return, the income was revised upwards and the Foreign Tax Credit was also claimed with resultant claim of refund. CPC has not allowed the Foreign Tax Credit or Refund. Rather, it has created demand, on account of the increase in the income in the revised return. 5.3. The claim of the appellant was duly considered in the light of the documents submitted and the same is not found correct. Firstly, the foreign tax has not been paid by the appellant, but by his foreign employer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to the assessee. It could be seen in another perspective. Even if it is assumed that the assessee has not paid these taxes (as pleaded by Ld. Sr. DR) then it could be viewed as excess salary received by the assessee which was not received but retained by the foreign employer for payment of foreign taxes. Therefore, once the payment has been included by the assessee in the income and taxed have been paid thereon, then this credit would certainly be available to the assessee. We order so. 6. So far as filing of Form 67 is concerned, the same has been held to be mere directory requirement by SMC bench of Bangalore Tribunal in the cited decision as under: - 16. I have given a careful consideration to the rival submissions. 1 agree with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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