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TMI Blog2022 (12) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... and the return of such assessment year has been furnished within the time specified under 139(1) or 139(4) of the Act. As in Anuj Bhagwati [ 2022 (9) TMI 1397 - ITAT MUMBAI] while deciding a similar issue held that section 90/91 of the Act has not been amended insofar as grant of foreign tax credit is concerned and Rules cannot override the Act and therefore filing of Form No. 67 is not mandatory but it is directory. Thus mere delay in filing Form No. 67 as per the provisions of Rule 128(9), as they stood during the year under consideration, will not preclude the assessee from claiming the benefit of foreign tax credit in respect of tax paid outside India. Since in the present case, the claim of the assessee was denied on this technical aspect without going into the merits, therefore, we deem it appropriate to direct the jurisdictional Assessing Officer to decide the claim of the foreign tax credit on merits, after accepting the Form No. 67 and other related documents filed by the assessee. Accordingly, grounds raised by the assessee are allowed for statistical purposes. - ITA No.2177/Mum./2022 - - - Dated:- 1-12-2022 - Shri Om Prakash Kant, Accountant Member And Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s specifying the nature of income and amount of tax paid in order to claim the credit of foreign tax paid. The return filed by the assessee was processed vide intimation dated 24/12/2021, issued under section 143(1) of the Act, whereby the foreign tax credit of Rs. 1,82,192, claimed by the assessee under section 90/90A of the Act was denied. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee on this issue on the basis that Form No. 67 was not filed by the assessee before the due date of furnishing the return of income under section 139(1) of the Act, as per the provisions of Rule 128(9) of the Income Tax Rules, 1962. Being aggrieved, the assessee is in appeal before us. 5. During the hearing, the learned Authorised Representative ( learned AR ) submitted that in the present case the assessee filed his return of income on 30/03/2021, after the extended due date. On the very same date, the assessee also filed Form No. 67 along with the relevant certificate/statement in order to claim the credit of tax paid in the USA on salary, dividend, and interest income earned by the assessee in the USA as per provisions of section 90/90A of the Act. Learned AR a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Twenty-seventh Amendment) Rules, 2022, w.r.e.f. 01/04/2022 and the same reads as under: (9) The statement in Form No. 67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the end of the assessment year relevant to the previous year in which the income referred to in sub-rule (1) has been offered to tax or assessed to tax in India and the return for such assessment year has been furnished within the time specified under sub-section (1) or sub-section (4) of section 139: 9. Thus with effect from 01/04/2022, the time period for furnishing statement in Form No. 67 has been extended till the end of the assessment year in which the corresponding income has been offered/assessed to tax and the return of such assessment year has been furnished within the time specified under 139(1) or 139(4) of the Act. 10. We find that the coordinate bench of the Tribunal in Sonakshi Sinha vs CIT, in ITA No. 1704/Mum./2022, vide order dated 08/09/2022, while dealing with a similar issue wherein the taxpayer filed Form No.67, after the due date for filing the return of income un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly provides the condition where the foreign tax credit would not be allowed. Rule 128 (9) does not say that if prescribed form would not be filed on or before the due date of filing of the return no such credit would be allowed. Further by the amendment to the rule with effect from 1 April 2022, the assessee can file such form number 67 on or before the end of the assessment year. Therefore, legislature in its own wisdom has extended such date which is beyond the due date of filing of the return of income. Further, the fact in the present case is quite distinct then the issue involved in the decision of the honourable Supreme Court in case of Wipro Ltd (supra). Here it is not the case of violation of any of the provisions of the act but of the rule, which does not provide for any consequence, if not complied with. Therefore, respectfully following the decisions of the coordinate bench on this issue, we hold the assessee is eligible for foreign tax credit, as she has filed form number 67 before completion of the assessment, though not in accordance with rule 128 (9) of The Income Tax Rules, which provided that such form shall be filed on or before the due date of filing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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