9911796707
TMI Blog2023 (10) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... fication brought out by the Government of India through Taxation & Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 31st March, 2020 vide Notification No. 56/2020/F.No.370142/23/ 2020-TPL) dated 29.07.2020. The assessee in its revised return of income claimed FTC of Rs. 5,21,888/-. The revised return was processed by CPC and an intimation was issued under section 143(1) of the Act on 23.03.2021 denying foreign tax credit claimed of Rs. 5,21,888/- and computed the net tax liability at Rs. 6,51,986/-. The assessee preferred an appeal before the ld. CIT (Appeals) and the ld. CIT (Appeals) sustained the action of the CPC in denying foreign tax credit for the reason that the assessee did not file statement in Form No. 67 before the due date for filing the return under section 139(1) of the Act, but was filed along with the revised return under section 139(5) of the Act. 3. The ld. Counsel for the assessee submits that filing of Form 67 along with return of income filed under section 139(1) of the Act is not mandatory, but only directory and in any case Form 67 was filed within the due date specified under section 139(5) of the Act along with the revised return and, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, on obtaining the information/documents assessee could file Form 67 along with the revised return under section 139(5) of the Act. The reason for the delay was stated to be that due to the death of her employer it resulted in procedural delay in receipt of documents from Ghana with respect to foreign income. 7. I observe that an identical issue arose in the case of Nirmala Murli Relwani Vs. ADIT (supra) who is the mother of the assessee and the co-ordinate bench of the Mumbai Tribunal on identical facts held that the assessee is entitled for foreign tax credit. While holding so the Tribunal observed as under:- "7. We have considered the rival submissions and perused the material available on record. In the present case, the assessee filed the revised return of income under section 139(5) of the Act on 26/08/2020, and claimed the foreign tax credit of Rs. 11,79,796. It is the claim of the assessee that she has received certain income amounting to Rs. 48,10,498, from foreign sources, on which tax was already paid in Ghana. Due to certain factors beyond her control, the assessee received Form No.67, after some delay. However, as soon as the assessee received the aforesaid Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment 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 under section 139(1), observed as under: "012. We have carefully considered the rival contention and perused the orders of the lower authorities. Short question In this appeal is whether assessee is entitled to foreign tax credit even when form number 67 required to be filed according to the provisions of rule 128 (9) of the Income Tax Rules on or before the due date of filing of the return of income, not complied by the assessee, but same was filed before the completion of the assessment proceedings. Precisely, the fact shows that assessee filed return of income u/s 139 (1) of the income tax act. In such a return of income, she claimed the foreign tax credit. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re 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 return of income. Accordingly, ground number 2 of the appeal of the assessee is allowed." 11. We further find that in another decision in Anuj Bhagwati vs DCIT, in ITAs No.1844 and 1845/Mum./2022, the coordinate bench of the Tribunal vide order dated 20/09/2022, 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. The relevant findings of the coordinate bench of the Tribunal in the aforesaid decision are as under: "8. We considering the facts, circumstances provisions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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