2024 (5) TMI 1441

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....October 2023 under Section 250 of the Income Tax Act, 1961 ('Act') issued by the Commissioner of Income- Tax (Appeals), National Faceless Appeal Centre (NFAC) for the aforesaid assessment year on the following grounds: 2. Denial or claim of Foreign tax credit u/s 90 of the Act 2.1 The order of the Commissioner of Income- Tax (Appeals) [CIT(A)] is contrary to law, facts and circumstances of the case. 2.2 The CIT (A) erred in confirming the action or the Assessing officer in denying the relief merely on the ground that Form 67 was not filed before filing the original tax return u/s 139 (1) of the Act. 2.3 The CIT(A) has failed to understand that the assessee is entitled to claim foreign tax credit as per th....

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....pra as also nil consequential relief thereto." 3. The facts of the case before the ld. CIT (A)/NFAC is brought out from the order of ld. CIT (A) as under :- "Original return was filed on 31.08.2018. It was revised on 31.03.2019. The foreign tax credit was disallowed in intimation u/s 143(1) dated 03.06.2020. Notice u/s 143(2) for Limited Scrutiny assessment was issued on 20.09.2019. In the original return, FTC of Rs. 5,86,619/- was claimed on estimate basis as US return was not available. The same was corrected to Rs. 6,67,530/- in the revised return as US return was available. The appellant also revised Form 67 accordingly. 5.1 It is also explained and noted that the intimation u/s 143(1) was passed on 03.06.2020 with ....

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....ppeal before us. We have heard both the parties and perused the records. 5. Ld. Counsel for the assessee has summarised his comments as under :- S. No. Particulars Date of filing Foreign tax credit (FTC) Total income declared Assessed total income 1 Original Return u/s 139 (1) 31.08.2018 Rs. 5,86,619 Rs. 67,27,580 NA 2 Form 67 with Original Return 31.08.2018 Rs. 5,86,619 NA NA 3 Revised Return u/s 139(5) 31.03.2019 Rs. 6,67,531 Rs. 67,28,500 67,28,500 4. Form 67 filed with Revised Return without supporting documents to show proof of payment of tax in US 31.03.2019 Rs. 6,67,531 NA NA 5. Form 67 filed once again with supporting documents evidenc....

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....e completion of assessment. 3. It is submitted that the condition prescribed in Rule 128 i.e. filing of Form 67 on or before due date for return of income is not a mandatory condition but it is directory. Therefore, as long as Form 67 is filed before completion of assessment, FTC should be granted. This legal principle is squarely covered in favour of the Appellant in the following decisions: a. Power and Energy Consultants India (P.) Ltd Vs ITO [2024] 159 taxmann.com 645 (Delhi - Trib) (refer Annexure 1) b. Bhaskar Dutta Vs DCIT [2023] 147 taxmann.com 481 (Delhi - Trib.) (refer Annexure 2) c. Duraiswamy Kumaraswamy V s PCIT [2023] 156 taxmann.com 445 (Madras) (refer Annexure 3)" 6. Per contra, ld. DR ....