TaxTMI 
TaxTMI 
2023 (7) TMI 1369
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....essee 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 provisions of section 90 of the Act read with Article 25 of In....
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.... 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 of filing of return of income after due date. Therefore, the assessee is not eligibl....
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....ification 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 income." In view of the aforementioned details, the assessee was required to file return of income as well as form 67 befor....
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....9 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 in below : S. No Particulars Pages 1 Decision of Hon'ble Mumbai Bench of the Tribunal in the case of Sonakshi Sinha vs. CIT (ITA No. 1704/Mum/2022) 1-10....
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....turn 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 record any contrary judgment to these facts and has relied upon the finding of ld. AO and the ld. CIT(A) on the issue and reiterated those contentions that has already been reflected in the orders of lower ....
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....y 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 assessee can file such form number 67 on or before the end of the assessment year. Therefore, legislature in its own wisdom has extended such date which is beyond the due date of filing of the return of in....