2022 (3) TMI 834

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ground of appeal (see note below) 1. The Appellate Order of Ld Commissioner of Income tax Appeals is bad and erroneous both on facts and in law 43,46,900/- 2. On the facts and in the circumstances of the case and in the law, the Ld Commissioner of Income Tax (Appeals) has erred in sustaining the assessment order and in denying the Foreign Tax Credit (FTC) for default in filling Form 67 under Rule 128. He Ought to have consider that the minor technical lapse cannot disentitle the assesse for FTC which is a substantial benefit and the tax credit cannot be denied. 43,46,900/- 3. On the facts and in the circumstances of the case and in the law, the Ld Commissioner of Income Tax (Appeals) has erred in denying FTC to the assesse ignor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urn of income which is mandatory for claiming FTC. Subsequently, during assessment proceedings the assessee on 30/07/2019 filed Form 67 which was not accepted by the Ld.AO. 2.3 The Ld.AO disallowed the claim on the ground that the Assessee failed to furnish Form 67 on or before the due date of furnishing the return of income as prescribed u/s 139(1) of the Act which is mandatory according to Rule 128(9) of the Rules. Aggrieved by the assessment order assessee preferred appeal before the Ld.CIT(A). 3. The CIT(A) confirmed the Order of the Ld.AO. The CIT(A) held that the Assessee has not filed Form 67 before the time allowed under section 139(5) of the Act, and therefore Form 67 is non-est in law. The CIT(A) also held that provisions of Rul....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e same cannot be disallowed for mere delay in compliance of a procedural provision. 5. On the contrary, the Ld.DR submitted that fulfillment of requirement under rule 128(9) of the Rules, is mandatory and hence the revenue authorities were justified in refusing to FTC. We have perused he submissions advanced by both sides in light of records placed before us. 6. There is no dispute that the Assessee is entitled to claim FTC. On perusal of provisions of Rule 128 (8) & (9), it is clear that, one of the requirements of Rule 128 for claiming FTC is that Form 67 is to be submitted by assessee before filing of the returns. In our view, this requirement cannot be treated as mandatory, rather it is directory in nature. This is because, Rule 128(9....