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TMI Blog2023 (12) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... fore 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. Thus Appellant would be eligible to foreign tax credit where Form No. 67 is filed before the completion of assessment for the relevant assessment year. Thus we remand the issue raised in present appeal relating to claim of foreign tax credit back to the file of Assessing Officer with the direction to grant foreign tax credit to the Appellant - Ground No. 1 raised by the Appellant is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... e date and the revised return under section 139(5) of the Act within the due date as applicable for the captioned assessment year. 1.4 Without prejudice to the above, the learned CIT(A) erred in not appreciating that submission of Form 67 is a procedural requirement and based on the substantive provisions of the Act read with the DTAA, the appellant should be eligible to claim relief of tax paid in USA. 1.5 Without further prejudice, the appellant submits that he has complied with the procedural requirement and if there is any defect therein, the appellant should be provided an opportunity to remedy the defect. 2. Re: Consequential levy of interest u/s 234B and 234C of the Act: 2.1 The learned CIT(A) erred in confirming the levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INR 1,23,399/-, and INR 31,124/-, respectively, has been levied as against interest of INR 1,755/- and INR 981/- as per revised return of income filed by the Appellant. 4. The Appellant, being aggrieved by the Intimation, dated 24/12/2021, issued under Section 143(1) of the Act, preferred appeal before CIT(A) which was dismissed vide order, dated 12/07/2023. 5. Being aggrieved by the above order of dismissal passed by the CIT(A), the Appellant has preferred the present appeal before the Tribunal on the grounds reproduced in paragraph 2 above which are taken up hereinafter in seriatim. Ground No. 1 6. Ground No. 1 raised by the Appellant is directed against the denial of foreign tax credit of INR 5,96,871/- claimed by the Appellant und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant cannot be allowed credit of foreign tax because of delay in filing of Form No. 67 as prescribed under sub-rule 9 of Rule 128." 8. We note that the CIT(A) has chosen not to follow the decision of the Mumbai Bench of the Tribunal in the case of Sonkashi Sinha Vs. Commissioner of Income Tax (Appeals): [2022] 142 taxmann.com 414 (Mumbai - Trib.) wherein it was held as under: "12. 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, no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o negative or adverse consequences are contemplated for non-adherence to such procedure, the relevant provision is normally not taken to be mandatory and is considered to be purely directory. Admittedly, Rule 128 does not prescribe denial of credit of FTC. Further the Act i.e. section 90 or 91 also do not prescribe timeline for filing of such declaration on or before due date of filing of ROI. Further rule 128 (4) clearly provides the condition where the foreign tax credit would not be allowed. Rule 128 (9) does not say that if prescribed form would not be filed on or before the due date of filing of the return no such credit would be allowed. Further by the amendment to the rule with effect from 1 April 2022, the assessee can file such for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Madras High Court. 10. In the present case also Form No. 67 has been filed by the Appellant before processing the return of income under Section 143(1) of the Act. Therefore, respectfully following the above judicial precedents, we remand the issue raised in present appeal relating to claim of foreign tax credit back to the file of Assessing Officer with the direction to grant foreign tax credit to the Appellant as per the aforesaid decision after verification. Ground No. 1 raised by the Appellant is allowed for statistical purposes. Ground No. 2 11. Ground No. 2 pertaining to levy of interest under Section 234B and 234C of the Act is disposed off as being consequential. The Assessing Officer is directed to re-compute the int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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