COVID limitation exclusion and foreign tax credit verification led to remand for fresh examination of supporting documents.

Limitation for filing the appeal was computed by excluding the COVID-19 period from 15.03.2021 to 02.10.2021, so the 31-day delay was not treated as delay. The foreign tax credit disallowance under Rule 128, based on the alleged absence of Form 67 and supporting evidence, required fresh examination because the assessee stated that the necessary material was available. The matter was remitted for reconsideration on merits after giving proper opportunity and verifying the documents on record.

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Issues: (i) Whether the appeal filed with a 31-day delay was within limitation in view of the COVID-19 exclusion of time; (ii) Whether the disallowance of foreign tax credit for want of Form 67 and other evidences under Rule 128 required remand for verification of the documents filed.

Issue (i): Whether the appeal filed with a 31-day delay was within limitation in view of the COVID-19 exclusion of time.

Analysis: The period from 15.03.2021 to 02.10.2021 stood excluded while computing limitation. The appeal period was therefore to be reckoned from 03.10.2021, and the appeal could not be treated as delayed.

Conclusion: The appeal was held to be within limitation.

Issue (ii): Whether the disallowance of foreign tax credit for want of Form 67 and other evidences under Rule 128 required remand for verification of the documents filed.

Analysis: The disallowance was made because the required evidences under Rule 128 were not found to have been filed with the original return. Before the Tribunal, the assessee stated that all necessary details were available. In these circumstances, and in the interest of justice, the claim required fresh examination on the basis of the material on record.

Conclusion: The matter was remitted to the Commissioner (Appeals) for fresh adjudication of the foreign tax credit claim in accordance with law.

Final Conclusion: The appeal succeeded only to the extent of securing a fresh look at the foreign tax credit claim, and the matter was sent back for reconsideration after affording proper opportunity to the assessee.

Ratio Decidendi: Where the relevant evidences for a foreign tax credit claim are stated to be available, the claim should be examined on merits after affording due opportunity, and limitation is to be computed after applying the binding exclusion of the COVID-19 period.

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