2023 (9) TMI 31

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..... Brinda Rama Krishna [ 2022 (2) TMI 752 - ITAT BANGALORE] as held Rule 128(9) of the Rules does not provide for disallowance of FTC in case of delay in filing Form No.67; (ii) filing of Form No.67 is not mandatory but a directory requirement and (iii) DTAA overrides the provisions of the Act and the Rules cannot be contrary to the Act. Thus we hereby direct the AO to allow the impugned credit of FTC to the assessee.
Shri Shamim Yahya, Accountant Member And Ms. Astha Chandra, Judicial Member For the Assessee : Shri C.S. Anand, Advocate For the Department : Ms. Smita Singh, Sr. DR ORDER PER ASTHA CHANDRA, JM The appeal filed by the assessee is directed against the order dated 16.11.2022 of the Ld. Commissioner of Income Tax, (Appeals), .....

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..... ction 143(1) of the Act but the claim of FTC was not allowed. 4. Aggrieved, the assessee filed appeal before the Ld. CIT(A). It was, interalia submitted that the assessee filed rectification petition under section 154 of the Act on 07.01.2022 which was rejected by the Ld. Assessing Officer ("AO") on 02.06.2022 on the ground that the assessee failed to furnish Form 67 on or before the due date for furnishing the return prescribed under section 139(1) of the Act which is mandatory according to Rule 128(9) of the Income Tax Rules, 1962 ("Rules"). It was also submitted that under section 90 of the Act r.w. Article 25(2)(a) of the India-USA DTAA claim of FTC cannot be disallowed for non-compliance of procedural requirement prescribed under the .....

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..... appeal before us and all the grounds relate thereto. 7. The Ld. AR submitted that the issue is covered in favour of the assessee by the decision of Bangalore Bench of the Tribunal in the case of Ms. Brinda Rama Krishna vs. ITO in ITA No. 454/Bang/2021 rendered on 17.11.2021. A copy thereof is placed at page 1-9 of the Paper Book. The Ld. DR relied on the order of the Ld. AO/CIT(A). 8. We have considered the submissions of the parties and perused the records. It is evident that the solitary ground of denial of the claim of the assessee for FTC is delay in filing Form 67. It is an admitted position that the assessee filed Form 67 on 26.03.2021 alongwith the revised return before the end of the relevant AY 2020-21 which is in conformity with .....

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