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TMI Blog2024 (11) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... ountry. But due to Covid out break, he inadvertently had not uploaded the Form-67. However, later the petitioner uploaded the Form-67 for all the Assessment Years. The reasons stated by the petitioner appears to be reasonable and further this Court in a similar case reported in Duraiswamy Kumaraswamy [ 2023 (11) TMI 1000 - MADRAS HIGH COURT] held that filing of foreign tax credit in terms of Rule 128 is only directory in nature and not mandatory. In the present cases the petitioner was working in United Kingdom and earned income there. The petitioner filed return of income in India for the assessment years 2019-20, 2020-21 and 2021-22 showing the income earned in the foreign country, in which he claimed TDS credit before United Kingdom, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /w Article 24 of India-UK Tax Treaty (DTAA), the petitioner suppose to file Form-67 along with ROI. But, because of Covid out break he inadvertently had not filed Form-67. However, later, on coming to know that Form-67 has not been filed, the petitioner uploaded Form-67 for all the three Assessment Years. The second respondent while processing the petitioner's Return of Income (ROI), disallowed the Foreign Tax Credit claimed by the petitioner. Under these circumstances, the petitioner had filed revisions under Section 264 of the Income Tax Act for revising the assessment orders and the said revision petitions were rejected as not maintainable observing that it is beyond the period of limitation and the revisional authority cannot pass a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Centre only on March 26, 2021. 10.According to the learned counsel appearing for the respondent, the procedure under rule 128 is mandatory and cannot be considered as directory in nature. The petitioner has filed his return including his Kenya income along with his Indian Income-tax and claimed the benefits of foreign tax credit. However, the petitioner would submit that it is not mandatory. The rule cannot make anythin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 not proper and the same is not in accordance with law. Therefore the impugned order is liable to be set aside. 13. Accordingly the impugned order dated January 25, 2022 is set aside. While setting aside the impugned order, this Court remits the matter back to the respondent to make reassessment by taking into consideration of the foreign tax credit filed by the petitioner on February 2, 2021. The respondent is directed to giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67 and the impugned orders are liable to be set aside. 8 Accordingly, this Court passes the following order:- (i) The impugned orders dated 30.03.2024, 12.01.2024 and 30.03.2024 are set aside subject to the payment of Rs. 10,000/- in each of the writ petitions, to the Principal Government Naturopathy Medical College and Hospital, Account No.7883022723, IFSC Code: IDIB000M157, within a period of 2 weeks from the date of receipt of copy of this order. While setting aside the impugned order, this Court remits the matter back to the respondent to make reassessment by taking into consideration the foreign tax credits filed by the petitioner. (ii) Upon production of proof with regard to the payment of a sum of Rs. 10,000/- in each of the writ pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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