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TMI Blog2025 (1) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by the Ld. Commissioner of Income Tax (Appeals), (in short "Ld. CIT(A)"), ADDL/JCIT (A)-1, Coimbatore vide order dated 13.03.2024 passed for A.Ys. 2019-20 & 2021-22. Since the common facts and issued are involved for both the years under consideration, all the cases are taken up together. 2. At the outset the Counsel for the assessee submitted that we shall not be pressing for cross objection filed by him for A.Y. 2021-22 and accordingly, the Cross Objection filed by the assessee in C.O. No. 17/Ahd/2024 is being dismissed as not pressed. Now we shall take up the Department's appeal for A.Y. 2019-20 3. The Department has taken the following grounds of appeal:- "1. Whether on the facts and in the circumstances of the case and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. This income primarily comprised of US sourced income of Rs. 1,85,62,939/- and Indian sourced income of Rs. 1,32,781/-. The US income and corresponding amount of tax credit entitlement (FTC) was derived from the US tax return filed in USA. The assessee had filed his US tax return on 28.01.2020 and on the basis of this, the assessee determined his total income liable to be taxed in India and filed the Income Tax Return in India on 05.07.2020. For the year under consideration, the assessee offered total foreign income of Rs. 1,85,62,943/- and claimed corresponding FTC (Foreign Tax Credit) of Rs. 53,73,987/-. The CPC while processing the return of income, in the intimation under Section 143(1) of the Act, did not allow the claim of Foreign T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rected to allow relief under Section 90 and rework tax accordingly. Ground 1 to 2 is allowed." 6. The issue for A.Y .20121-22 is also similar, wherein the claim of Foreign Tax Credit was denied to the assessee on account of late filing of Form No. 67 beyond the due date of filing of return under Section 139(1) of the Act. 7. The Department is in appeal before us against the aforesaid orders passed by Ld. CIT(A) allowing the Foreign Tax Credit of taxes paid in USA. 8. On going through the instant facts, and the judicial precedents on the subject, we observe that Ld. CIT(A) has correctly held that Foreign Tax Credit cannot be denied to the assessee on account of delay in filing of Form No. 67 after the due date specified for furnishing ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due date of the return of income. The revised return of income was also filed on 9-6-2020 and Form 67 was also filed within the extended period of filing of the due return. This aspect was not taken into account and, in fact, the assessee has paid the taxes outside India under section 90 read with article 23 of the India-Netherlands DTAA. This fact is not denied by the Assessing Officer or by the Commissioner (Appeals). The late filing of Form No. 67 cannot be the reason for denying the entitlement of the assessee in respect of the benefit of treaty when the salary earned in Netherlands and the tax thereof was paid in the said foreign country as per the provisions of article 23 of the DTAA between India and Netherlands. The same should hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appeal on this aspect of filing of Form No. 67. We condone the delay, if any. We, thus, direct the Ld. CIT(A) to pass orders on merit strictly in accordance with law upon giving an opportunity of being heard to the appellant and upon considering the evidence on record or any other evidence which the appellant may choose to file at the time of hearing of the matter." 12. In the result, we find that Ld. CIT(A) has correctly held that Rule 128 of the Income Tax Rules which obliges tax payers to submit Form 67 before filing their Income Tax Return to claim Foreign Tax Credit is a procedural requirement and filing of Form 67 should not result in denial of Foreign Tax Credit to the tax payer. 13. In the result, the appeals filed by the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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