9911796707
TMI Blog2024 (10) TMI 1483X X X X Extracts X X X X X X X X Extracts X X X X ..... FTC of Rs. 6,39,560/- under the Act read with Article 24 of India-UK Tax Treaty ("DTAA"). 2 Learned counsel for the petitioner would submit that the petitioner was working in UK and filed his return of income (ROI) on 21.09.2020 in India. The payer in UK deducted a sum of Rs. 6,27,023/- towards TDS and while paying the tax in India, for the purpose of claiming Foreign Tax Credit (FTC) under Section 90 of the Income Tax Act r/w Article 24 of India-UK Tax Treaty (DTAA), the petitioner suppose to file Form-67 along with ROI. But, during the Covid out break, he was not able to get necessary documents from the foreign country and in turn there was difficulties in filing Form-67. However the petitioner filed Form-67 on 29.08.2022. The second re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amy Kumaraswamy vs. Principal Commissioner of Income Tax and Other) passed the following order. "9. In the present case, the petitioner initially worked at Kenya and subsequently, he became the resident of India from the assessment years 2018-2019 and 2019-2020. The petitioner admitted the fact that he has filed his return in India on August 10,, 2019. The intimation under Section 143(1) was issued on March 26, 2020. However, he has filed the return without Form 67 which is required to be filed under Rule 128 to claim the benefit of foreign tax credit and the same came to be filed on February 2, 2021 which was well before the completion of the assessment year. The intimation under Section 143(1) was issued from the Centralized Processing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. The filing of foreign tax credit in terms of the rule 128 is only directory in nature. The rule is only for the implementation of the provisions of the Act and it will always be directory in nature. This is what the hon'ble Supreme Court had held in the above cases when the returns were filed without furnishing Form 3AA and the same can be filed subsequent to the passing of the assessment order. 12. Further, in the present case, the intimation under Section 143(1) was issued on March 26, 2021, but the foreign tax credit was filed on February 2, 2021. Thus, the respondent is supposed to have provided the due credit to the foreign tax credit of the petitioner. However, the foreign tax credit was rejected by the respondent, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income. It is to be noted that Section 90, Section 90A and Section 91 of the Income Tax Act of 1961 have been drafted specifically to avoid the burden of double taxation. 7 In the present case, even though the petitioner had not uploaded Form-67 while filing return of tax, later he uploaded the same with delay and that too due to Covid out break he was not able to get necessary documents from the foreign country, which appears to be genuine. Therefore this Court is inclined to condone the delay in filing Form 67 and the impugned order is liable to be set aside. 8 Accordingly, this Court passes the following order:- (i) The impugned order dated 07.03.2024 is set aside subject to the payment of Rs. 10,000/- to the Principal Government N ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
