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TMI Blog2024 (9) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... y stage of proceedings. In case of Manoj Kaushikprasad Jingar [ 2023 (8) TMI 382 - ITAT AHMEDABAD] ITAT held that late filing of form no.67 cannot deny entitlement to the assessee to tax benefit when the salary earned is from Tanzania and there is a tax treaty between India and Tanzania. The assessee cannot be taxed twice on the same income and therefore the Ld.CIT(A), cannot deny the claim of the assessee. In the case of Sanjeev Agarwal [ 2023 (5) TMI 1287 - ITAT JAIPUR] ITAT held that Foreign Tax Credit could not be denied for delay in filing Form No. 67 as filing of Form No. 67 is not mandatory but a directory requirement. In the case of 42 Hertz Software India (P.) Ltd. [ 2022 (3) TMI 834 - ITAT BANGALORE] ITAT held that where for claiming foreign tax credit (FTC), assessee failed to furnish Form67 on or before due date of furnishing return of income prescribed under section 139(1) but submitted same subsequently during assessment proceedings, assessee was entitled to claim Foreign Tax Credit for taxes paid. Decided in favour of assessee. - Shri Siddhartha Nautiyal, Judicial Member And Shri Makarand Vasant Mahadeokar, Accountant Member For the Appellant : Ms. Nupur Shah, A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right to add, amend, alter or modify any of the grounds stated hereinabove either before or at the time of hearing. 3. The brief facts of the case are that the assessee filed its return of income for AY 2020-21, declaring taxable income of Rs. 2,20,41,980/-. The assessee while preparing the return of income claimed relief u/s. 90/90A of the Act for Rs. 4,86,257/- on income received from USA amounting to Rs. 39,45,510/- ( which was disclosed as income from other sources in the return of income ). However, in the intimation received by the assessee u/s. 143(1) of the Act, dated 24.12.2021, relief claimed u/s. 90/90A of the Act was not allowed to the assessee. The reason for non grant of credit of TDS was that there was a delay in filing of Form No.67 for claiming relief as per the DTAA between the Government of India and USA u/s. 90/90A of the Act and this Form was filed by the assessee on 10.03.2021. The assessee filed appeal before the Ld.CIT(A), and submitted that the assessee had duly filed Form no.67 along with certificate of taxes withheld issued by USA based employer of the assessee and therefore, it is fit case where the relief should be granted to the assessee and since asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was correct in denying the credit of FTC paid abroad. 5. Conclusion: Accordingly, the grounds of appeal of the Appellant is DISMISSED. 5. The assessee is in appeal before us against the aforesaid order passed by the Ld.CIT(A). Before us, the Ld.Counsel for the assessee submitted that Form no.67 has been duly filed by the assessee on 10.03.2021 i.e even before the date when the return of income of the assessee was processed by CPC on 24.12.2021. Secondly, it was submitted that the Department has not disputed the contents/veracity of the particulars furnished by the assessee in form no.67. The Department is not disputing fact that the assessee has earned salary from USA and the assessee is legitimately claiming benefit of taxes deducted/withheld by the USA Employer which are duly reflecting in form no.67. Therefore, it was submitted before us that the particulars of taxes for which credit/benefit has been claimed by the assessee has not been disputed by the Department at any stage of proceedings. Thirdly, the Ld.Counsel drew our attention to the return of income filed by the assessee and submitted that the assessee had duly declared income earned by the assessee in USA in the return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y entitlement to the assessee to tax benefit when the salary earned is from Tanzania and there is a tax treaty between India and Tanzania. The assessee cannot be taxed twice on the same income and therefore the Ld.CIT(A), cannot deny the claim of the assessee. 7.1 In the case of Sanjeev Agarwal 152 taxmann.com 67 (Jaipur - Trib.), the ITAT held that Foreign Tax Credit could not be denied for delay in filing Form No. 67 as filing of Form No. 67 is not mandatory but a directory requirement. The ITAT made the following observations in the order: The assessee further submitted that rule 128 was inserted by Income-tax (18th Amendment) Rules, 2016, with effect from 1-4-2017. The requirement for filing Form 67 is prescribed under rule 128 only and the same does not emerge out of any of the provisions contained in the I T Act, 1961. It is reiterated that there is no requirement of filing any form, be it Form 67 or otherwise, for claiming FTC as per article 24 of the DTAA between India and UK. Thus, rejecting the FTC for delay in filing of Form 67 would tantamount to pitting the Income-tax Rules, 1962 on a higher pedestal, in comparison to the provisions of the DTAA. It is well understood t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench.The Coordinate Bench also relied upon the decision of ITAT Bangalore Bench in the case of Ms. Brinda Ramakrishna (supra).[Para 6.2] Therefore, considering the facts of the present case, the FTC deserves to be allowed to the assessee even if Form67 was filed by the assessee after the due date of filing the return under section 139(1), and it is viewed that not allowing foreign tax credit by Assessing Officer (CPC) was nothing, but a mistake apparent on record. Therefore, the revenue is directed to allow the claim of the assessee. 7.2 In the case of 42 Hertz Software India (P.) Ltd. 139 taxmann.com 448 (Bangalore - Trib.) , the ITAT held that where for claiming foreign tax credit (FTC), assessee failed to furnish Form67 on or before due date of furnishing return of income prescribed under section 139(1) but submitted same subsequently during assessment proceedings, assessee was entitled to claim Foreign Tax Credit for taxes paid. 7.3 In the case of Rajesh Kumar Lakhran 159 taxmann.com 602 (Jaipur - Trib.), the ITAT held that Foreign Tax Credit (FTC) cannot be denied for delay in filing Form No. 67 as filing of Form No. 67 is not mandatory but a directory requirement. 7.4 Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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