ITAT Ahmedabad grants relief u/s 90, overturns interest levy, emphasizes India-Netherlands DTAA compliance.

The ITAT Ahmedabad allowed the appeal, granting relief under section 90 of the Income Tax Act and overturning the consequential levy of interest under sections 234B and 234C. The Tribunal emphasized honoring the India-Netherlands DTAA to prevent double taxation and acknowledged the procedural compliance of the assessee in filing Form 67.

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Issues:
1. Relief under section 90 of the Income Tax Act denied.
2. Consequential levy of interest under sections 234B and 234C of the Act.

Analysis:
1. Relief under section 90 of the Income Tax Act denied:
- The assessee filed a revised return of income claiming relief under section 90 of the Act of INR 2,65,367. The CIT(A) denied the relief stating that Form 67 was not filed within the due date of the return of income under section 139(1) of the Act.
- The assessee argued that Form 67 was submitted along with the revised return of income as required by Rule 128 of the Income-tax Rules, 1962. The CIT(A) failed to appreciate that the original and revised returns were filed within the respective due dates.
- The Appellant contended that Form 67 is a procedural requirement and, based on the Act and the Double Taxation Avoidance Agreement (DTAA) with Netherlands, the relief should be granted. The Appellant requested an opportunity to rectify any defects in the submission.

2. Consequential levy of interest under sections 234B and 234C of the Act:
- The CIT(A) confirmed the levy of interest under sections 234B and 234C of the Act, despite the Appellant filing a revised return showing NIL interest. The Appellant disputed this levy.

3. General:
- The Appellant, a resident in India for AY 2019-20, was on deputation to Netherlands. The Appellant claimed relief under section 90 of the Act for taxes paid in Netherlands. The Assessing Officer issued a demand, leading to the appeal before the CIT(A).
- The Appellant argued that taxes paid in Netherlands should be considered for relief under the India-Netherlands DTAA. The Appellant submitted necessary documentation, including Form 67, within the extended due date for filing the return.
- The Tribunal noted that the Appellant paid taxes in Netherlands as per the DTAA, and the late filing of Form 67 should not negate the entitlement to treaty benefits. Denying the relief would result in double taxation, which is unjustifiable.
- The Tribunal allowed the appeal, emphasizing that the Appellant should not be taxed twice on the same income. The decision of the CIT(A) and the Assessing Officer was overturned, and the relief under section 90 was granted to the Appellant.

In conclusion, the ITAT Ahmedabad allowed the appeal of the assessee, granting relief under section 90 of the Income Tax Act and overturning the consequential levy of interest. The Tribunal emphasized the importance of honoring international tax agreements to prevent double taxation and highlighted the procedural compliance of the assessee in claiming the relief.

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