2024 (9) TMI 1267 - AT - Income Tax

ITAT Rules on Foreign Tax Credit Denial Due to Late Form No.67 Filing for 2020-21; Appeal Partially Allowed.

The ITAT addressed an appeal concerning the denial of foreign tax credit due to the late filing of Form No.67 for the assessment year 2020-21. The ... Denial of Credit for Foreign Tax paid u/s. 90 r/w Article 25 of India-USA Tax Treaty (DTAA) - Form No.67 was not filed within prescribed time - HELD THAT:- Admittedly, in the present case, Form No.67 was not filed within the due date for filing of the return of income under the provisions of section 139(1), but Form No.67 was filed on 30.03.2021. The CPC, Bangalore had processed the return of income as on 24.12.2021, which means that Form No.67 was very much available with the CPC, Bangalore. Therefore, the CPC, Bangalore cannot deny the claim for credit for foreign tax paid merely because Form No.67 was not filed within the due date specified for filing the return of income under the provisions of section 139(1) of the Act, as it is merely a directory. We direct the CPC, Bangalore to amend the Intimation u/s 143(1) of the Act by taking into consideration the Form No.67 filed by the appellant. Accordingly, the grounds of appeal filed by the assessee stands partly allowed. The appeal was filed against the order of Addl./JCIT(A)-1, Bengaluru for the assessment year 2020-21. The appellant worked abroad and filed the Return of Income late, leading to denial of credit for Foreign Tax paid. The Tribunal directed CPC, Bangalore to consider the late-filed Form No.67 and allowed the appeal partly.