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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 ..... iling of Form No. 67 after the due date specified for furnishing return of income u/s 139(1) of the Act. Delay in filing of Form No. 67 cannot take away the vested right of the assessee to claim credit of taxes paid in overseas jurisdiction in terms of Double Tax Agreement with the relevant country. As decided in Chiragkumar Nandalal Makadia [ 2024 (8) TMI 751 - ITAT AHMEDABAD] held that where assessee was on deputation to Netherlands by his employer and salary earned in Netherlands and tax thereof was paid in said foreign country as per provisions of article 23 of DTAA between India and Netherlands, late filing of Form No. 67 could not be reason for denying benefit of foreign tax credit to assessee. CIT(A) has correctly held that Rule 128 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has neither filed return of income nor Form No.67 within due date of filing of return of income as per Section 139(1) of the Act, as provided in Sub-rule (9) of Rule 128 of the IT Rules? ii. Whether on the facts and in the circumstances of the case and in law, the Ld. Addl. JCIT(A) is justified in directing the Assessing Officer to allow Foreign Tax Credit claimed u/s 90 of the Act, without appreciating the fact that the assessee has failed to adhere to the mandatory condition of filing of Form No.67 within due date of filing of return of income as per Section 139(1) of the Act, as provided in Sub-rule (9) of Rule 128 of the IT Rules? 3. The appellant craves leaves to add, modify, amend or alter any grounds of appeal at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67 on or before the due date of filing of return of income under Section 139(1) of the Act. The Department denied the claim of FTC on the ground that since Form 67 was filed by the assessee beyond the due date of filing of return of income under Section 139(1) of the Act, therefore, Foreign Tax Credit could not be allowed to the assessee in terms of Rule 128 of the Income Tax Rules. 5. In appeal before Ld. CIT(A), the assessee relied on a large number of rulings in support of the contention that claim for Foreign Tax Credit cannot be rejected solely on the basis of delay in submitting Form No. 67. Ld. CIT(A) after taking into consideration the case laws submitted by the assessee, allowed Foreign Tax Credit to the assessee with the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that mere delay in filing of Form No. 67 cannot take away the vested right of the assessee to claim credit of taxes paid in overseas jurisdiction in terms of Double Tax Agreement with the relevant country. In the instant case, there is no dispute that the assessee had filed return of income in USA and had produced all relevant documents with respect to taxes paid by the assessee in USA. Therefore, mere delay in filing of Form No. 67, which is a procedural requirement, cannot be take away the vested right of the assessee to claim Foreign Tax Credit in respect to taxes paid by the assessee in overseas jurisdiction. 10. In the case of Chiragkumar Nandalal Makadia vs. Income-tax Officer [2024] 166 taxmann.com 26 (Ahmedabad - Trib.)[12-08-2024] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee cannot be taxed twice on the same amount which results into double taxation. Thus, the Commissioner (Appeals) as well as Assessing Officer was not right in denying the claim of the assessee. Accordingly, the appeal filed by the assessee is allowed. 11. In the case of Niravsinh Kishoresinh Gehlot vs. Income-tax Officer, CPC [2024] 159 taxmann.com 743 (Ahmedabad - ITAT)/[2024] 206 ITD 123 (Ahmedabad - ITAT)[08-02-2024], the Ahmedabad ITTA held that where assessee claimed Foreign Tax Credit (FTC) and filed Form No. 67 after due date specified for furnishing return under Section 139(1) but before completion of assessment proceedings, assessee's FTC claim was to be allowed. The ITAT made the following observations in this regard: We fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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