TaxTMI 
TaxTMI 
2023 (3) TMI 146
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....ssing Officer by, rejecting credit for tax paid in other countries, the counsel advised the assessee to file an appeal before the Tribunal which caused delay of 94 days. The delay in filing of appeal is neither intentional nor to derive any undue benefit. Therefore, in the interests of justice, the delay may be condoned. 3. The ld. DR, on the other hand opposed petition filed by the assessee for condonation of delay and submitted that reasons given by the assessee does not come under reasonable cause and thus, delay should not be condoned. 4. We have heard the parties and considered reasons given by the assessee for condonation of delay and we find that, there is a reasonable cause with the assessee in not filing appeal within time allowed under the Act. Therefore, considering reasons given by the assessee, we condone the delay in filing of appeal and admit appeal filed by the assessee for adjudication. 5. The assessee has raised the following grounds of appeal: "Ground No. 1: Non grant of Foreign Tax Credit ('FTC') of Rs. 36,25,781 On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in confirming the action of the Ld. Assessing Officer, ....
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.... Rs. 36,25,781 is not a permissible adjustment under Section 143(1) of the Act as no such adjustment relating to debatable issues can be made in the Intimation under Section 143(1) of the Act. It is prayed that the order of Ld. CIT(A) is contrary to the order of Hon'ble ITAT in the case of City Manager Association VS DCIT, CPC Bangaluru, (ITA No.1345/Ahd/2019) as well as to the decision of Hon'ble Supreme Court in the case of ACIT VS., Rajesh Jhaveri Stock Brokers (P.) Ltd [2007] 291 ITR 500 and accordingly, the Ld. Jurisdictional Assessing Officer be directed to allow the FTC of Rs. 36,25,781. Ground No.4: Proceedings under Section 143(1) of the Act are invalid in law On the facts and circumstances of the case and in law. the Ld. CIT (A) ought to have held the entire 143(1) proceedings as invalid in law as the Ld. AO had not followed the provisos to Section 143(1)(a) of the Act of giving opportunity to the Appellant to defend his case. It is prayed that the order of the Ld. CIT(A) is contrary to the order of Hon'ble ITAT in the case of Arham Pumps V. Deputy Commissioner of Income Tax (CPC), Bengaluru (ITA NO.206/Ahd/2021) and the Ld. Jurisdictional Assessing Office....
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..... Govindarajan Roopkumar vs ADIT in ITA No. 609/Chny/2021, where the Tribunal after considering relevant submissions of the assessee and also by following the decision of ITAT Bangalore Bench in the case of Ms. Brinda Ramakrishna vs ITO in ITA No. 454/Bang/2021, directed the AO to allow credit for tax paid in foreign countries on the ground that filing of Form no 67 on or before due date for filing return of income is directory in nature but not mandatory condition. 8. The Ld. DR, on the other hand supporting the order of the CIT(A), submitted that although the CBDT has issued a notification on 18.08.2022 and extended due date for filing Form no. 67 on or before extended due date for filing return of income u/s. 139(4) of the Act, but said notification does not apply to this assessment year, because the amendment of the taxation laws is effective from assessment year 2022-23 onwards. Therefore, submitted that the AO has rightly denied credit for tax paid in other countries and their order should be upheld. 9. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. As per the provisions of section 90 of the Act, in or....
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....tion of the Appellant that filing of Form 67 is a procedural requirement and noncompliance thereof does not disentitle the Assessee of the FTC. 7. Aggrieved by the order of the CIT(A), the Assessee is in appeal before the Tribunal. The learned counsel for the Assessee submitted that disallowance of FTC is bad in law. He submitted that Section 90 of the Act provides that Government of India can enter into Agreement with other countries for granting relief in respect of income on which taxes are paid in country outside India and such income is also taxable in India. Article 24 of India Australia DTAA provides for credit for foreign taxes. Article 24(4)(a) is relevant in the present context. Same is extracted below: "4. In the case of India, double taxation shall be avoided as follows: (a) the amount of Australian tax paid under the laws of Australia and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of India in respect of income from sources within Australia which has been subjected to tax both in India and Australia shall be allowed as a credit against the Indian tax payable in respect of such income but in an amount not exce....