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TMI Blog2024 (9) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case, since the Form No. 67 has been filed by the assessee alongwith return u/s 139(8A) on the same date which is updated return in ITR 3 U, the AO was not justified in ignoring the Form No. 67 which was also on record before him at the time of assessment proceedings. As such, we direct the AO to consider the Form No. 67 for the purpose of assessment of the updated return filed u/s 139(8A) Disallowance of TDS credit claimed - it is admitted that this particular return of income has been submitted under the provisions of section 139(8A) and no claim for TDS refund is allowable with respect to return filed under the said section - HELD THAT:- As pointed out by the CIT. DR that the assessee has also not claimed the full TDS as reflecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2020-21. 1.4 The Appellant filed Form No.67 on 31.03.2023 (date of order 29.12.2023 filed before processing of ITR). The denial of Foreign Tax Credit was not called for. 1.5 Without prejudice to the above, the learned ADDL/JCIT(A) erred in not appreciating that submission of Form 67 is a procedural requirement and based on the Registrar substantive provisions of the Act read with the DTAA, the appellant should be eligible to claim relief of tax paid in Italy. 3. The facts of the case are that the assessee has filed its return of income for the assessment year 2020-21 (year under appeal), on 31.03.2023 in Form ITR-3 updated return u/s 139(8A) of the Act 1961, declaring a total income of Rs. 4,82,580/- which included income fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oted that, as per Rule 128 (9), the statement in Form No. 67 and the certificate or the statement shall be furnished on or before the due date of ITR filling u/s 139(1) of the IT Act. 5.1.3 As seen from the above, it is an admitted fact that the assessee has violated the provisions of Rule 128 (9) of the Income Tax Rule, 1962 wherein it is mandatory to file statutory ITR and Form No.67 within due date. I have carefully considered the issue under dispute and examined the same in the light of the provision of the statute. At the outset, as discussed above as per Rule 128 of the Income Tax Rules, 1962, a resident taxpayer is eligible to claim credit for any foreign tax paid, in a country or specified territory outside India. The credit shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Director of Income-tax, CPC. 6.2 He further relied on the judgment of the ITAT, Mumbai Benches in ITA No. 1704/Mum/2022 in the case of Sonakshi Sinha vs. CIT(A) NFAC, dated 20.09.2022 wherein it was held that: In the instant case the CIT (A), NFAC has not disputed the allowability of the foreign tax credit. He has only disallowed the credit on the ground that form 67 has not been filed on or before the due date of filing of return of income as per rule 128 (9) of the income tax rules, 1962. It was held that one of the requirements of Rule128 for claiming FTC is that Form 67 is to be submitted by assessee before filing of the returns and that this requirement cannot be treated as mandatory, rather it is directory in nature. Further observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for taxation and has not also claimed the entire TDS in updated return and as such full credit of taxes cannot be allowed in this case. 9. We have considered the rival arguments and have considered all the materials on record. Regarding the first issue of furnishing of Form No. 67 within the due date for filing of return u/s 139(1) we are of the view that the same is only directory in nature and is not mandatory. We are of the opinion that it will be sufficient compliance on the part of the assessee if the said Form No. 67 claiming the benefit of FTC is filed before the completion of assessment proceedings and the said Form No. 67 should be before the AO for his consideration at the time of processing or assessment u/s 143(1). In the inst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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