TaxTMI 
TaxTMI 
2022 (12) TMI 357
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....se from the intimation dated 24/12/2021, issued under section 143(1), for the assessment year 2020-21. 2. In this appeal, the assessee has raised the following grounds: "1. The CIT()A has grossly erred in upholding the Intimation u/s. 143(1) of the Income tax Act, 1961 for assessment year 2020-21 dated 24-122021, wherein credit for the appropriate amount of foreign tax paid by appellant has not been given by the Assessing Officer. 2. The CIT(A) has grossly erred in disregarding the Form 67 along with certificates and statements filed by the appellant under Rule 128 of the Income-tax Rules, 1962, for the claim of foreign tax credit. 3. The CIT (A) was not justified in not allowing the claim under DTAA in respect of tax paid by the app....
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....enied. The learned CIT(A) vide impugned order dismissed the appeal filed by the assessee on this issue on the basis that Form No. 67 was not filed by the assessee before the due date of furnishing the return of income under section 139(1) of the Act, as per the provisions of Rule 128(9) of the Income Tax Rules, 1962. Being aggrieved, the assessee is in appeal before us. 5. During the hearing, the learned Authorised Representative ('learned AR") submitted that in the present case the assessee filed his return of income on 30/03/2021, after the extended due date. On the very same date, the assessee also filed Form No. 67 along with the relevant certificate/statement in order to claim the credit of tax paid in the USA on salary, dividend, and....
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....section 90/90A of the Act. In the impugned order, it has been held that Form No. 67 was filed by the assessee after the due date of filing the return of income under section 139(1) of the Act, as per the provisions of Rule 128(9) and thus claim of the assessee was rejected. 8. We find that under Rule 128(9), as it stood during the year under consideration, provided 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 139, in the manner specified for furnishing such return of income. Thus, during the year under consid....
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....ve carefully considered the rival contention and perused the orders of the lower authorities. Short question In this appeal is whether assessee is entitled to foreign tax credit even when form number 67 required to be filed according to the provisions of rule 128 (9) of the Income Tax Rules on or before the due date of 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 ....
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....ine for filing of such declaration on or before due date of filing of ROI. Further rule 128 (4) clearly provides the condition where the foreign tax credit would not be allowed. Rule 128 (9) does not say that if prescribed form would not be filed on or before the due date of filing of the return no such credit would be allowed. Further by the amendment to the rule with effect from 1 April 2022, the assessee can file such form number 67 on or before the end of the assessment year. Therefore, legislature in its own wisdom has extended such date which is beyond the due date of filing of the return of income. Further, the fact in the present case is quite distinct then the issue involved in the decision of the honourable Supreme Court in case o....
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....l decisions are of the opinion that there is no amendment on these aspects in the Section 90 of the Act and the Rules cannot override the Act and therefore the filing of Form No 67 is not mandatory but it is directory. Accordingly, We restore the disputed issue to the file of the CIT(A) to adjudicate afresh on merits considering the observations in above paragraphs and the ratio of judicial decisions. Further the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal and allow the grounds of appeal of the assessee for statistical purposes." 13. Thus, respectfully following the aforesaid decisions of the coordinate bench of the Tribunal, we are of the consid....