2023 (5) TMI 1286

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....ssessment Year 2020-21. 2. The only grievance of the assessee is that the ld. CIT(A) has erred in not allowing the relief of tax of Rs.3,50,106/- paid in Republic of Korea and claimed in the return u/s 90 of the Act as available under Article 23(a)(i) in DTAA with Republic of Korea. 3. At the outset, ld. Counsel for the assessee submitted that the issue raised in the instant appeal is squarely covered by the decision of the Coordinate Bench in the case of Sonakshi Sinha vs. CIT in ITA No. 1704/Mum/2022; Assessment Year 2018-19; order dt. 20/09/2022. On the other hand, the ld. D/R supported the order of the lower authorities but could not controvert the contention of the assessee. 4. We have heard rival contentions and perused the m....

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....win conditions were mentioned the honourable High Court and lower appellate authorities considered one of the condition as mandatory and one of the condition as directory. He submitted that here section 90 or 91 does not lay down any condition of filing any form. The requirement of filing of the form is provided under rule 128 of The Income Tax Rules. Therefore here the situation is quite different. He submitted that these conditions have been considered by the coordinate bench in case of Brinda Ramakrishna. 012. We have 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....

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..... 67. Same view is also taken by a coordinate division bench in Vinodkumar Lakshmipathi V CIT(A) NFAC ITA No.680/Bang/2022 06.09.2022. 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 provision is normally not taken to be mandatory and is considered to be purely directory. Admittedly Rule 128 does not prescribe denial of credit of FTC. Further the Act i.e. section 90 or 91 also do not prescribe timeline 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 for....