TaxTMI 
TaxTMI 
2023 (7) TMI 1369
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....e ACIT/DCIT, Circle-06, Jaipur. 2. The assessee has marched this appeal on the following grounds:- "1. That NFAC erred on facts and in law in upholding rectification order dated 08.02.2021 passed by the assessing officer under section 154 of the Act (pursuant to intimation dated 08.06.2020 and rectification order dated 07.08.2020 passed by Central Processing Centre) disallowing foreign tax credit of Rs. 15,53,686 claimed by the Appellant in the return of income. 2. That NFAC/CIT(A) erred on facts and in law in not appreciating that the tax liability in relation to salary income earned in United States of America (USA) during secondment period was discharged in USA and such income is not taxable in India in terms of prov....
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.... Rs. 1,91,803/- under Chapter VI-A of the Act from the above gross total income and a self-assessment tax of Rs. 24,70,738/- was paid by the assessee after claiming the eligible tax credits. The CPC processed return of income u/s 143(1) on 08.06.2020 determining demand of Rs. 21,23,250/- and later on determining demand of Rs. 22,00,795/- on 07.08.2020 under section 154 of the IT Act, 1961. In that order of the ld. AO u/s. 154 of the Act he hold that the assessee was required to file return of income as well as form 67 before due date specified for furnishing the return of income under sub-section (1) of section 139. The assessee filed form 67 on 28.01.2019 and return of income on 22.01.2019 under section 139(4) which is applicable in case o....
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.... the issue of Relief u/s 90/90A: In respect of relief of foreign tax credit u/s 90/90A/91 relevant portion of notification no.9 dated 19.09.2017 issued by CBDT is mentioned here-in-below: "an assessee, being a resident shall be allowed a credit for the amount of any foreign tax paid by him....as specified in rule 128 of the Income tax (18th amendment) rules, 2016. As per sub rule 9 of rule 128, the statement in form no. 67 reffered 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 due date specified for furnishing the return of income under sub-section (1) of section 139.......submission of form 67 shall precede filling of return of incom....
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....T Rules, 2016 have been furnished after the due date specified for furnishing the Return of Income under sub-section (1) of section 139 of the IT Act. Therefore, the order of 154 of the IT Act is hereby confirmed and this ground of appeal is dismissed. 4.2 Ground No. 3 relates to charging of interest under sections 234A, 234B & 234C of the IT Act. The charging of interest is consequential which doesn't require specific adjudication and hence this ground of appeal is dismissed. 4.3 Ground No. 4 is general in nature and requires no specific adjudication. 5. In result, the appeal is dismissed" 5. In this appeal the ld. AR of the assessee submitted a detailed case law paper book and the same is extracted here i....
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....the findings of the lower authorities. The ld. DR as regards the issue of non granting of the foreign tax credit submitted that the Form No. 67 is required to be filed before the due date of filing of return of income under rule 128 which is mandatory condition and thus supported the finding of the lower authorities. 8. We have heard the rival contentions and perused the material placed on record. The only issue in this appeal is whether the assessee is entitled for foreign tax credit claimed even though the required Form No. 67 is not filed in accordance with the provision of rule 128(9) of the Income Tax Rules. At the same time based on the averments made by the ld. AR of the assessee the bench noted that the ld. DR did not placed on r....
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.... particular procedure, if no negative or adverse consequences are contemplated for nonadherence 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 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 ....