TMI Blog2023 (11) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... ng his Kenya income along with his Indian Income tax and claimed the benefits of FTC. However, the petitioner would submit that it is not mandatory. The Rule cannot make anything mandatory and it can be directory in nature, that too before the Assessment, the claim to avail the benefits of FTC is filed. Therefore, it would be the amounts to due compliance under the Act. As decided in the case of Commissioner of Income-Tax, Maharashtra v. G.M.Knitting Industries (P) Limited in Civil [ 2015 (11) TMI 397 - SC ORDER] wherein it was held that Form 3AA is required to be filed along with the return of income to avail the benefit and even if it is not filed, but the same is filed during assessment proceedings but before the final order of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr.Justice Krishnan Ramasamy For the Petitioner : Mr.Vikram Vijayaraghavan for Mr.Subbaraya Aiyar Padmanabhan For the Respondents : Dr.B.Ramasamy, Senior Standing Counsel ORDER This Writ Petition has been filed to quash the order of the 1st respondent in DIN and order No.ITBA/REV/ F/ REV7/ 2021- 22/1039075246(1) dated 25.01.2022 for the Assessment year 2019- 2020 and to direct the 1st respondent to condone the delay in filing Form-67 and grant the Foreign Tax Credit claim of Rs. 23,23,484/-. 2. The petitioner was employed in Kenya during the year 2016-2018 as CEO. For the financial year 2018-2019, the petitioner was a resident of India, including his Kenya income, he has filed his Indian Income Tax return, and claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctification order under Section 154 of the Act by e-mail on 21.07.2021 with the similar demand of Rs. 29,69,260/-. 4. In these circumstances, the petitioner had approached the 1st respondent under Section 264 of the Act bringing out all the facts of the case and filed written submissions on 22.10.2021. On 25.01.2022, the respondent passed the impugned order under Section 264 of the Act rejecting the FTC claim, wherein it was held that filing of Form-67 along with the return of income under Section 139(1) was statutory obligation which was not complied with and further, a revised return was not filed and hence FTC could not be granted. 5. At the same time, the respondent accepted that Form-67 which was uploaded on 02.02.2021 before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 139 of the Act, Form-67 should be filed on or before the due date of filing the return of income tax. In their counter at Paras 3 and 4, they have also reiterated this aspect. Therefore, he submitted that since the Rule 128 is mandatory the Department has rightly rejected the FTC filed subsequent to the return. Hence, plead for dismissal of the Writ Petition. 8. Heard the learned counsel appearing on either side and perused the materials available on record. 9. In the present case, the petitioner initially worked at Kenya and subsequently, he became the resident of Indian from the assessment year 2018-2019 and 2019-2020. The petitioner admitted the fact that he has filed his return in India on 10.08.2019. The intimation under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Commissioner of Income-Tax, Maharashtra v. G.M.Knitting Industries (P) Limited in Civil Appeal Nos.10782 of 2013 and 4048 of 2014 dated 24.06.2015 , which was referred above, would be squarely applicable to the present case. In the present case, the returns were filed without FTC, however the same was filed before passing of the final assessment order. The filing of FTC in terms of the Rule 128 is only directory in nature. The rule is only for the implementation of the provisions of the Act and it will always be directory in nature. This is what the Hon'ble Supreme Court had held in the above cases when the returns were filed without furnishing Form 3AA and the same can be filed the subsequent to the passing of assessment ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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