TaxTMI 
TaxTMI 
2023 (2) TMI 1154
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....e are as under:- (1) That the Ld. lower authorities erred in not giving the benefit of foreign tax credit under section 90 to the extent of INR 7,38,649/-. (2) That the entire adjustment under 143(1) is null and void as the same was issued without a notice under 143(1)(a). (3) That Ld. Lower authorities erred in denying the foreign tax credit and sustaining the same beyond the scope and mechanism of section 143(1). (4) That the Ld. Lower authorities erred in denying the benefits of DTAA which being more beneficial had an over-riding effect on all other provisions of the Act. (5) The Ld. Lower authorities erred in invoking Rule 128 read with requirement of filing Form 67 which was never in place at the time of filing of return.....
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....before the Tribunal. 5. Ld. Counsel for the assessee has filed a written submission, which reads as under:- The assessee is a Private Limited Company and had earned all its income from Tanzania which was received by the assessee after payment of withholding tax of INR 21,24,975/-. Subsequently tax returns were filed in India with tax liability of INR 7,38,649/- against which relief under section 90 with respect to taxes paid at Tanzania was claimed. The assessee filed his return of income under section 139(1) on 06.07.2017 and Notification 9 was issued in the prescribed form 67 duly filled in on 19.09.2017. Revised return was filed in Form No. 67 on 20.09.2018 and issuance of 143(1) denying the relief on 05,04.2019. ld. CIT(Appeals) dism....
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.... held that filing of Form 67 is a procedural directory requirement and not a mandatory requirement. This is because Rule 128(9) does not provide for disallowance of foreign tax credit in case of delay in filing Form No. 67. It is well settled that while laying down a particular procedure, if no negative or adverse consequences are contemplated for non-adherence to such procedure, the relevant provisions is normally not taken to be mandatory and is considered to be purely directory as in the case of Sonakshi Sinha -vs.- CIT(A) [ITA No.1704/MUM/2022] (Mumbai Tribunal). In the 4th limb of legal grounds, he contended that 143(1)(a) issued intimating assessee of such adjustment, therefore, in violation of provision of section 143(1), rendering t....
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....ble for deduction of such tax or signed by the assessee. There are certain other requirements, which need to be fulfilled for the purpose of filing Form No. 67. 8. Now our attention was drawn towards the Notification issued by the Central Board of Direct Taxes on 18th August, 2022. The time limit for filing the Form 67 was before the last date of filing the return under section 139(4) of the Act and the method of filing Form 67 was prescribed on 19.09.2017. Further we find that the method of filing Form no. 67 was prescribed on 19.09.2017 i.e. after the date of filing the return of income by the assessee. It is also not in dispute that the last date for filing the return under section 139(4) of the Act for A.Y. 2017-18 was 31.03.2019 and t....
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.... 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 subsection (1) of section 139, in the manner specified for furnishing such return of income. We find that coordinate bench in 42 Hertz Software India (P.) Ltd v. ACIT [2022] 139 taxmann.com 448 (Bangalore - Trib.) wherein following its earlier order in the case of Ms. Brinda Rama Krishna v.ITO [2022] 135 taxmann.com 358 (Bang - Trib) it was held t....