9911796707
TMI Blog2024 (2) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- We find identical issue had come up before the Coordinate Bench of the Tribunal in the case of Govinda Rajulu Dhondu [ 2023 (9) TMI 1209 - ITAT HYDERABAD ] wherein the Tribunal, following the decision of the Coordinate Bench of the Tribunal in the case of Baburao Alturi [ 2022 (12) TMI 525 - ITAT HYDERABAD ] and distinguishing the decision of the Vizag Bench of the Tribunal in the case of Muralikrishna Vaddi [ 2022 (6) TMI 693 - ITAT VISAKHAPATNAM ] has restored the issue to the file of the AO with a direction to allow the FTC after due verification. We restore the issue to the file of the AO with similar direction to allow the FTC after due verification. AO shall give due opportunity of being heard to the assessee and decide the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on application u/s 154. However, the FTC u/s 90 was again not allowed in the 2nd rectification order dated 8.08.2022. 7. Aggrieved with such rejection of the rectification application, the assessee filed appeal before the learned CIT (A) NFAC. The learned CIT (A) NFAC relying on the decision of the Vizag Bench of the Tribunal in the case of Muralikrishna Vaddi vs. ACIT/Dy.CIT reported in (2022) 142 Taxmann.com 32 (Vizag.Trib) and various other decisions dismissed the appeal of the assessee. 8. Aggrieved with such order of the learned CIT (A) NFAC the assessee is in appeal before the Tribunal. 9. The learned Counsel for the assessee referring to page 154 to 160 of the paper book drew the attention of the Bench to the acknowledgement of filin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non for subjecting the income to tax in USA, which is the primary requirement of allowing foreign tax credit under Article 23 of the relevant DTAA. 12. We find identical issue had come up before the Coordinate Bench of the Tribunal in the case of Govinda Rajulu Dhondu (Supra) wherein the Tribunal, following the decision of the Coordinate Bench of the Tribunal in the case of Baburao Alturi vs. Dy.CIT in ITA No.108/Hyd/2022 and distinguishing the decision of the Vizag Bench of the Tribunal in the case of Muralikrishna Vaddi vs. ACIT/Dy.CIT (Supra) has restored the issue to the file of the Assessing Officer with a direction to allow the FTC after due verification. The relevant observation of the Tribunal from Para 8 to 9 read as under: 8. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produced in the preceding paragraph. It is the submission of the learned Counsel for the assessee that filing of foreign tax credit certificate in Form-67 is directory in nature Baburao Atluri and not mandatory and therefore the NFAC is not justified in denying the Foreign Tax Credit. 11. We find the Bangalore Bench of the Tribunal in the case of M/s. 42 Hertz software India Pvt. Ltd (supra) while deciding an identical issue has held that FTC cannot be denied to the assessee, where the assessee filed FTC in Form No.67, although belatedly since filing of such Form 67 is not mandatory but directory in nature. The relevant observation of the Tribunal from para 6 onwards reads as under:- 6. There is no dispute that the Assessee is entitled to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for which the said Form-67 was filed belatedly by 14 days. It was stated that the tax jurisdiction of the Zambian deductor follow different period for taxing the income and have different due dates for filing the return as compared to India. So, Baburao Atluri far as the decision relied on by ld. DR in the case of Muralikrishna Vaddi(supra) is concerned, we find there is a delay of more than two years without any valid and reasonable cause. Therefore, the said decision in our opinion cannot be applicable to the facts of the present case. In any case, when there are two view possible, the view which is favourable to the assessee has to be followed as held by Hon'ble Supreme Court in the case of CIT vs. Vegetable Products Ltd. reported ..... X X X X Extracts X X X X X X X X Extracts X X X X
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