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TMI Blog2023 (7) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on 25.01.2021 framed by ld. ADIT, CPC, Bengaluru. 2. Though the assessee has raised nine grounds of appeal, but the sole grievance raised by the assessee is that the ld. CIT(Appeals) erred in not granting the foreign tax credit of Rs.6,97,756/- claimed by the assesese by way of filing Form 67 after the due date of filing of the return of income. 3. At the outset, ld. Counsel for the assessee stated that the issue stands squarely covered in favour of assessee by plethora of judgments including that of the Hon'ble Tribunal of Kolkata Bench in the case of Satreena Consultants Pvt. Limited -vs.- ITO in ITA No. 543/KOL/2022 dated 22nd February, 2023, wherein it has been held that filing of Form 67 is a mere procedural formality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enefit of foreign tax credit for such delay. We find support from the decision of this Tribunal in the case of Satreena Consultants Pvt. Limited (supra), wherein similar issue was decided in favour of the assesese, wherein also Form 67 was filed after the due date of filing of the return of income but the claim of the assessee was allowed by this Tribunal observing as follows:- "7. We have heard the rival contentions and gone through the relevant records placed before us. The only issue for our consideration is regarding relief under section 90 of the Act at Rs.7,38,649/- claimed by the assessee but denied by both the lower authorities for delay in filing Form No. 67. We observe that it is not in dispute that the assessee earned income fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 139(4) of the Act for A.Y. 2017-18 was 31.03.2019 and the assessee filed Form 67 on 28.09.2018 alongwith revised return. Under these given facts and circumstances, where the assessee filed the original return on 06.07.2017 when there was no mechanism for filing Form No. 67, as it came into effect on 19.09.2017 and thereafter before the expiry of the due date prescribed under section 139(4) of the Act, the assessee furnished Form 67 and also filed the revised return. I am of the considered view that the claim of the assessee towards withholding taxes paid in Tanzania is to be given against the tax liability on the income declared in India. Even otherwise filing of Form 67 has been held to be directory in nature by the Coordinate B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Krishna v.ITO [2022] 135taxmann.com 358 (Bang - Trib) it was held that "one of the requirements of Rule128 for claiming FTC that Form 67 is to be submitted by assessee before filing of the returns and that this requirement cannot be treated as mandatory, rather it is directory nature. This is because, Rule 128(9) does not provide for disallowance of FTC in case of delay in filing Form No. 67. Same view is also taken by a coordinate division bench in Vinodkumar Lakshmipathi V CIT(A) NFAC ITA No.680/Bang/2022 06.09.2022. It is well settled that while laying down a particular procedure, if no negative or adverse consequences are contemplated for non-adherence to such procedure, the relevant provision is normally not tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of the return of income. Accordingly, ground number 2 of the appeal of the assessee is allowed". 9. I, therefore, respectfully following the decision referred to hereinabove and the discussion made supra, direct the ld. Assessing Officer to allow the claim of the assesee made in From No. 67 and give benefit of relief of withholding tax credit in Tanzania against the tax liability arising in India. Accordingly all the effective grounds raised by the assessee in the instant appeal are allowed. 7. Similar view was also taken by this Tribunal in another case of Atanu Mukherjee (supra). We, therefore, respectfully following the decision referred hereinabove and since the ld. D.R. having not placed any binding precedence in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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