AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2022 (10) TMI 107
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee has raised following grounds:- "i. on the facts and circumstances of the case and in law, Commissioner of Income tax (Appeals), National faceless appeal Centre (NFAC) has erred by not considering the explanation , documents and disclosures made with regard to the claim of relief u/s 90 of the income tax act 1961 ii. the CIT (A), National faceless appeal Centre has erred in passing an order and disallowing the claim of relief of foreign tax credit u/s 90 of the income tax act, 1961 amounting to Rs. 2,921,327/- on the same income of Rs. 14,610,080/- offered in the same year, which has been doubly taxed in the United Kingdom and in India. iii. On the facts and circumstances of the case, the CIT (A), NFAC has not d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iny criteria for the issue of double taxation relief u/s 90/91. The requisite notice u/s 143 (2) of the act was issued. 05. The learned AO found that assessee has claimed foreign tax credit amounting to Rs. 2,921,327/- however from the filing portal it was noted that assessee has uploaded form number 67 for claiming foreign tax credit on 20/1/2020. Fact that assessee has filed her return of income on 22/09/2018, within the due date as per provisions of Section 139 (1) of the act. Thus, the issue is that form number 67, required to be filed for claiming foreign tax credit on or before the date of filing of the return terms of rule 128 (9) of the Income Tax Rules 1962, was filed belatedly. This is also confirmed by notification number 9 on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment for claiming of the foreign tax credit. Merely because form number 67 was not filed within the due date prescribed in Section 139 (1) of the act but during the course of assessment proceedings, the assessee should have been allowed credit for foreign taxes paid. Assessee further relied on the decision of Brinda Ramakrishna versus Income Tax Officer 5 (3) (1) Bangalore (2021) ITA No. 454/bang/2021 dated 17/11/2021 along with several other decisions stating that rule 128 being merely a procedural provision, any default in its compliance shall not result in disallowance of the credit eligible to be allowed and claimed. 07. The learned CIT - A held that for the purpose of claiming foreign tax credit relief, form number 67 was notified o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the lower authorities and submitted that form number 67 is required to be filed on before the due date of filing of the return of income as provided Under Rule 128 is mandatory in nature. It is further stated that merely because the time limit for filing of the form is mentioned in the rules, it cannot be said that it is not mandatory. He submitted that for claiming of the tax credit, which is a beneficial to assessee, therefore, the conditions prescribed therein should be strictly followed. He further submitted that non-filing of form number 67 on or before the due date of filing of the return of income results into consequence of denial of foreign tax credit, therefore, the time limit provided Under Rule128 cannot be said to be directory ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....filing of the return of income, not complied by the assessee, but same was filed before the completion of the assessment proceedings. Precisely, the fact shows that assessee filed return of income u/s 139 (1) of the income tax act. In such a return of income, she claimed the foreign tax credit. However, form number 67 was filed during the course of assessment proceedings and not before the due date of filing return. Rule 128 (9) of the Income Tax Rules 1962 provides that the statement in Form No. 67 referred to in clause (i) of sub-rule (8) and the certificate or the statement referred to in clause (ii) of sub-rule (8) shall be furnished on or before the due date specified for furnishing the return of income under sub-section (1) of section....