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TMI Blog2024 (6) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... raborthy, JCIT, Sr. D/R ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The present appeals are directed at the instance of the assessee against the separate but identical orders of the Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-10, Mumbai (hereinafter the ld. CIT(A) ), passed u/s 250 of the Income Tax Act, 1961 ( the Act ) for the Assessment Year 2019-20. 2. The Registry has pointed out that there is a delay of 20 days in filing of these appeals. There is a petition for condonation of delay stating therein, the reasons for the delay. On perusal of the petition, we are convinced that the assessee was prevented for reasonable cause from filing this appeal in prescribed time limit. Accordingly, we condone the delay and admit all the captioned appeals for hearing on merits. 3. As the issues involved in these appeals are identical, for the sake of convenience they were heard together and are being disposed off by way of this common order. 4. The common issue involved in these appeals that arises for our adjudication is in respect of denial of relief claimed u/s 90 of the Act on account of delay in furnishing of Form 67 prescribed under Income Tax Rules, 1962. 5. Facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led on the Income-tax portal with all necessary attachments. Form 67 for Assessment Year 2019-20, 2021-22 and 2022-23 have been furnished on 01/11/2019, 09/05/2023 and 20/06/2023; respectively. The correctness of the tax credit available to the assessee on account of the tax paid on salary earned in Bhutan is not in dispute as the same has been claimed in the return which has been processed u/s 143(1) of the Act and the claim made by the assessee in the ITR is in consonance to the Form 67 filed. We observe that the ld. CIT(A) has dismissed all the three appeal of the assessee as non-maintainable only on account of delay in filing of the appeals. 8.1. We, on considering the fact that the assessee is an individual and has made a legitimate claim of Foreign Tax Credit (FTC) and has also furnished Form 67 and and the delay in filing of the appeal before the ld. CIT(A) has occurred due to time spent in taking alternative remedy u/s 154 of the Act but the same did not fructify. Though the assessee ought to have filed the appeal against the order u/s 154 of the Act but he had filed the appeal against the order u/s 143(1) of the Act. Considering the bonafide claim of the assessee, we are i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue was decided in favour of the assessee, wherein also Form 67 was filed after the due date of filing of the return of income but the claim of the assessee was allowed by this Tribunal observing as follows:- 7. We have heard the rival contentions and gone through the relevant records placed before us. The only issue for our consideration is regarding relief under section 90 of the Act at Rs.7,38,649/- claimed by the assessee but denied by both the lower authorities for delay in filing Form No. 67. We observe that it is not in dispute that the assessee earned income from Tanzania and Rs.21,24,975/- was deducted as withholding tax and the credit for the same was claimed as relief under section 90 of the Act against the tax liability arising in India at Rs.7,38,649/-. We notice that for the purpose of foreign tax credit, Rule 128( 8) of the Income Tax Rules provides the procedure wherein for the purpose of credit of any foreign tax shall be allowed on furnishing various documents, which includes Form No. 67, which is a statement of income from the country or specified territory outside India offered for tax for the previous year of foreign tax deducted or paid on such income and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign tax credit. However, form number 67 was filed during the course of assessment proceedings and not before the due date of filing return. Rule 128 (9) of the Income Tax Rules 1962 provides that the statement in Form No. 67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section 139, in the manner specified for furnishing such return of income. We find that coordinate bench in 42 Hertz Software India (P.) Ltd v. ACIT [2022] 139 taxmann.com 448 (Bangalore Trib.) wherein following its earlier order in the case of Ms. Brinda Rama Krishna v.ITO [2022] 135 taxmann.com 358 (Bang Trib) 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. This is because, Rule 128(9) does not provide for disallowance of FTC in case of delay in filing Form No. 67. Same view is also taken by a coordinate division bench in Vinodkumar La ..... X X X X Extracts X X X X X X X X Extracts X X X X
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