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TMI Blog2025 (3) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019-20 in denying Foreign Tax Credit claimed by the assessee. 2. Heard rival submissions. On reading of the orders of the authorities below we observed that the claim for Foreign Tax Credit was denied to the assessee for the reason that the assessee has filed Form 67 after filing return of income u/s 139(1) of the Act. The assessee filed 154 application and claimed Foreign Tax Credit and also filed Form 67. Since the assessee filed Form 67 belatedly and not along with the return as specified under section 139(1) of the Act the claim for Foreign Tax Credit was denied. 3. Identical issue came up before the coordinate bench of the Tribunal in the case of Neha Kapoor Vs. ITO in ITA No.135/Del/2023 dated 29.08.2023, wherein the Tribunal directed the Assessing Officer to allow credit of Foreign Tax Credit to the assessee observing as under: "8. We have considered the submissions of the parties and perused the records. It is evident that the solitary ground of denial of the claim of the assessee for FTC is delay in filing Form 67. It is an admitted position that the assessee filed Form 67 on 26.03.2021 along with the revised return before the end of the relevant AY 2020-21 which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon the findings of lower authorities. 8. During the course of hearing, the Ld. AR humbly prayed that the impugned order dated 30.12.2023 passed by Ld. CIT(A) should be set aside and the present appeal filed by the assessee should be allowed and in support of his argument / claim, Ld. AR relied on orders of the coordinate Benches of ITAT, as follows: * Order dated 04.04.2024 in the case of Isha Mago vs. Asstt. Director of Income Tax, Central Processing Centre in ITA No.173/Del/2024. * Order dated 11.09.2023 in the case of Rameshwar Prasad Shrivastava vs. ITO, in ITA No. 1839/Del/2023. * Order dated 14.06.2023 in the case of Vikash Daga vs. ACIT in ITA No. 2536/Del/2022. * Order dated 17.04.2023 in the case of Ajay Kumar Mishra vs. DCIT in ITA No. 1835/Del/2022. 8.1 For the ease of ready reference we reproduced the decisions of the Co-ordinate Benches of ITAT, as under: In the case of Isha Mago vs. Asstt. Director of Income Tax (supra), held as under: "5.2. It is also noticed that under similar facts and circumstances the ITAT Delhi Bench B' in the case of Eastman Industries Ltd. vs. ACIT (supra) has adjudicated identical issue, observing as under: "7. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the FTC can be disallowed for noncompliance of any procedural provision. As the provisions of DTAA overrides the provisions of the Act, the assessee has vested right to claim the FTC under the tax treaty, and the same cannot be disallowed for mere delay in compliance of a procedural provision. In other words, we would like to submit that as per the provisions of section 90(2) of the Act, where the Central Government of India has entered into a DTAA, the provisions of the Act would apply only to the extent they are more beneficial to a taxpayer. Therefore, the provisions of DTAA override the provisions of the Act, to the extent they are beneficial to the assessee. 7. That the lower authorities intends to disallow the claim of the assessee in terms of Rule 128(9), however as stated above, the provisions laid down in the Income Tax Rules shall stand to be overridden by the specific provisions mentioned in the DTAA more so to the extent that the same* is beneficial to the tax payer. And as such, since the DTAA does not specifically state to disallow the claim of FTC on mere delay in filing of Form 67, we would submit that the disallowance made by the CPC and further confirmed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 90/90A Assessing Officer disallowed claim, on ground that assessee had not filed Form No. 67 along with return Assessee filed Form No. 67 before Commissioner (Appeals) Commissioner (Appeals) held that since assessee had failed to file Form No. 67 within due date specified for filing return under section 139(1), Assessing Officer had rightly disallowed claim for foreign tax credit - It was noted that Bangalore Bench of Tribunal on identical issue in case of Ms. Brinda Ramakrishna v. ITO [2022] 135 taxmann.com 358/193 ITD 840 held that non-furnishing of Form No., 67 before due date specified for furnishing return under section 139(1) was not fatal to claim for foreign tax credit - Whether Assessing Officer was to be directed to give credit for foreign tax as per Form No. 67 filed before Commissioner (Appeals) Held, yes [Paras 5 and 6] [In favour of assessee] * Ritesh Kumar Garg Vs ITO in ITA No. 261/JP/2022 dated 15/09/2022 - ITAT Jaipur Bench held that:- Held that filing of Form 67, in my view, is a procedural/directory requirement and is not a mandatory requirement. Therefore, violation of procedural norms does not extinguish the substantive right of claiming the credit of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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