TaxTMI 
TaxTMI 
TaxTMI 
2024 (2) TMI 838
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....eign Tax Credit relief amounting to Rs. 83,445/- u/s 90 of the Act, as claimed by the Appellant in his return of income. The appellant submits that being a resident of India is his return of income filed in India, he has offered income from house property aggregating to Rs. 11,93,709/- earned in United Kingdom (UK) on which he has paid taxes of Rs. 83,445/0 in UK; hence the AO ought to have allowed foreign tax credit of Rs. 83,445/- u/s 90 of the Act while assessing Appellant's total income. 4. The brief facts of the case are that, the assessee is an individual and is engaged in the business of providing consultancy services to foreign and domestic clients and the books of accounts are Audited u/s 44AB of the Act. The assessee has filed return of income for the A.Y. 2018-19 on 12.10.2018 disclosing a total income of Rs.86,05,760/-. Whereas, the assessee has included Rs. 11,93,709/- being net rental income from house property in United Kingdom and the tax of Rs. 84,445/- paid in United Kingdom was claimed as Foreign Tax Credit (FTC), as the assessee is eligible to claim tax relief u/sec 90 of the Act as per Double Taxation Avoidance and agreement (DTAA) with the government of Un....
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.... the eligibility of FTC claim and also there is no power to condone the delay in filling the Form No. 67 and the CIT(A) has confirmed the action of A.O and dismissed the appeal. We find in respect of foreign tax credit (FTC), the assessee is required to file Form no. 67 with details of the statement of income from a country or specified territory outside India and foreign tax credit and further rule 128 of the income tax rules prescribes the procedure for claiming the foreign tax credit. We find Section 90 of the income tax Act allows double taxation relief in respect of agreements with foreign countries or specified territories and also Section 91 of the IT Act deals with the taxability of income where the countries which don't have agreements. Further there is no amendment in Section 90 of the Act with regard to claim of FTC and in such cases rule procedures are directory and not mandatory. The Ld. AR relied on the following judicial decisions: 1. Duraiswamy Kumaraswamy Vs. Pr.CIT [336 CTR 108(Madras) 2. Sonakshi Sinha Vs. CIT(A) [197 ITD 263 (MUM) 3. Ms. Brinda Ramakrishna Vs/ The ITO (ITA No. 454/Bang/2021) (ITAT Banglore. 4. Nirmala Murli Relwani Vs/ ADIT (198 ITD 603)....
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....ysis Centre of Excellence (P) Ltd. reported in (2021) 432 ITR 471. 8. We accordingly, hold that FTC cannot be denied to the assessee. Assessee is directed to file the relevant details/evidence in support of its claim. We thus remand this issue back to the Ld. AO to consider the claim of assessee in accordance with law, based on the verification carried out in respect of the supporting documents filed by assessee. Accordingly the grounds raised by assessee stands allowed for statistical purposes. In the result appeal filed by assessee stands allowed for statistical purposes. 9. Similarly, in the case of Ms. Brindra Rama Krishna, Vs. Income Tax Officer in ITA No 454/Bang/2021 for A.Y. 2018-19 order dated 17.11.2021 the Hon'ble Tribunal has observed that the filling of FormNo.67 is not mandatory but directory in Para 13 to 17 of the order which is read as under: 13. It was submitted that as per the provisions of Section 90(2) of the Act, where the Central Government of India has entered into a DTAA, the provisions of the Act would apply to the extent they are more beneficial to a taxpayer. Therefore, the provisions of DTAA override the provisions of the Act, to the extent t....
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....one view possible on the issue which is the view set out above. I am also of the view that the issue in the proceedings under Section 154 of the Act, even if it involves long drawn process of reasoning, the answer to the question can be only one and in such circumstances, proceedings under Section 154 of the Act can be resorted to. Even otherwise the ground on which the Revenue authorities rejected the Assessee's application under Section 154 of the Act was not on the ground that the issue was debatable but on merits. I therefore do not agree with the submission of the learned Departmental Representative in this regard. 17. In the result, the appeal is allowed." 10. The Hon'ble High Court of Madras in the case of Duraiswamy Kumaraswamy Vs. Pr.CIT (156 taxmann.com 445) dated 6-10-2023 has observed as under: "Section 90 of the Income-tax Act, 1961, read with rule 128 of the Income-tax Rules, 1962 and article 24 of DTAA between India and Australia - Double taxation relief - Where agreement exists (Elimination of double taxation - Eligibility of relief) Assessment year 2019-20 Whether filing of FTC in terms of rule 128 is only directory in nature - Held, yes - Whether where assess....