TaxTMI 
TaxTMI 
2023 (1) TMI 370
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....in turn arose from the intimation dated 17/03/2021, issued u/s 143(1) of the Act for the assessment year 2019-20. 2. In its appeal, the assessee has raised following grounds:- "1. Considering the facts and circumstances of the case and in law, the Commissioner of Income-tax (Appeals) / National Faceless Appeal Centre (NFAC) has erred in confirming the action of the Assessing Officer in denying Foreign Tax Credit of Rs.14,86,291/- and thereby raising demand of Rs.21,61,850/- under section 143(1) of the Income-tax Act, 1961. 2. Considering the facts and circumstances of the case and in law, the Commissioner of Income-tax (Appeals) / Faceless Appeal Centre (NFAC) has not disputed the allowability of the Foreign Tax Credit. They have only ....
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....on 31/10/2020, declaring a total income of Rs.64,42,150. The assessee in his return of income claimed foreign tax credit of Rs.14,86,291 and in this regard also filed Form no.67 on the same date. The return of income filed by the assessee was processed vide intimation dated 17/03/2021, issued under section 143(1) of the Act whereby foreign tax credit of Rs.14,86,291, claimed by the assessee under section 90 / 90A of the Act was denied. 5. 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 of return of income under section 139(1) of the Act. Being aggrieved, the assessee is in appeal before us. 6. Dur....
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....r section 139(1) of the Act, as per the provisions of Rule 128(9) and thus claim of the assessee was rejected. 9. 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 consideration, the assessee was required to furnish Form No. 67 on or before the due date of filing the return of income under section 139(1) of the Act, as per the provi....
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....ign 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 (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....
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....ot 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 of Wipro Ltd (supra). Here it is not the case of violation of any of the provisions of the act but of the rule, which does not provide for any consequence, if not c....
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....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 considered opinion that mere delay in filing Form No. 67 as per the provisions of Rule 128(9), as it stood during the year under consideration, will not preclude the assessee from claiming the benefit of foreign tax credit in respect of tax paid outside India. Since in the present case, the claim of the assessee was denied on this technical aspect without going into the merits, therefore, we deem it appropriate to direct the jurisdicti....