2024 (4) TMI 343

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..... d the intention of the legislation in the said case has to be construed in a manner which benefits the assessee. The A.O. is hereby directed to allow the FTC claim of the assessee and to grant refund in accordance with the law. Appeal filed by the assessee is allowed.
Shri Shamim Yahya, Accountant Member For the Assessee : Dr. Rakesh Gupta, Advocate, Shri Somil Aggarwal, Advocate For the Revenue : Shri Om Prakash, Sr. DR ORDER This appeal by the assessee is directed against the orders of the ld. Addl.CIT/JCIT (A)-5, Chennai dated 24.01.2024 for the assessment year 2020-21. 2. The sole issue in this case is denial of Foreign Tax Credit (FTC) of Rs. 6,20,920/- by the CPC while processing the ITR filed by the assessee under section 143 .....

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..... has a verification column, affirming that the claim of the FTC to the best of the knowledge and belief of the Appellant is true and correct. Providing credit of FTC in the absence of such verification is not logical while the authorities erred in failing to comprehend that the claims are otherwise not verifiable. Further, Rule 128 incorporates the word "Shall", which imply that filing of Form no.67 before the time limit u/s. 139(1) [now extended to 139(4)] is directory/mandatory. Having failed to file the same, the CPC was correct in denying the credit of FTC paid abroad." 4. Against the above order, assessee is in appeal before the ITAT, I have heard both the parties and perused the records. 5. Ld. Counsel for the assessee subm .....

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..... Rule 128, it is evident that the assessee has to file Form 67 on or before the due date of furnishing the return of income as per section 139(1) of the Act, which the statement specifies as mandatory and not directory as per the word 'shall' used in the said provisions. It is evident that the assessee has filed Form 67 belatedly after the due date for filing of return u/s. 139(1) and, hence, the lower authority have rejected the claim of the assessee. Though the decision cited by the ld. Departmental Representative (ld. DR for short) in Muralikrishna Vaddi, Visakhapatnam (supra) by the co-ordinate bench has held that delay in filing of Form 67 disentitles the assessee to claim FTC as the said procedure is mandatory, we are inclined to perus .....

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