2024 (5) TMI 1456

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....or statistical purposes by the Tribunal vide order dated 11.07.2023. Subsequently, the Tribunal vide Miscellaneous Application No. 237/PUN/2023 order dated 19.01.2024 recalled its earlier order. Hence, this is a recalled matter. 3. The Revenue in the instant appeal has challenged the order of CIT(A) / NFAC in allowing Foreign Tax Credit (hereinafter referred to as 'FTC') when the assessee has not filed Form No. 67 before the due date of filing as per Rule 128(9) of the Income Tax Rules, 1962. 4. Facts of the case, in brief, are that the assessee is a Resident and ordinarily Resident as per Indian Income Tax law and also a tax Resident of USA. He filed his return of income on 21.10.2021 by claiming refund of Rs. 34,380/- wherein FTC wa....

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....T(A) / NFAC in allowing the FTC of Rs. 4,32,10,256/- stating that when the assessee did not file form No. 67 within the stipulated time of filing the return of income u/s 139(1) of the Act, the CIT(A) / NFAC was not justified in allowing such FTC. 7. The Ld. Counsel for the assessee on the other hand filed the following decisions and submitted that under identical circumstances, the Tribunal has allowed the FTC even though form No. 67 was filed belatedly:  i) Deelip Kanhailal Chawla vs. ITO vide ITA No. 87/PUN/2023, order dated 09.03.2023 ii) Milind Moreshwar Pimpalkhare vs. DDIT, CPC vide ITA No. 1031/PUN/2023, order dated 13.10.2023 iii) Duraiswamy Kumaraswamy vs. PCIT & Ors vide W.P. No. 5834 of 2022 an....

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....d NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the AO in the instant case did not allow the Foreign Tax Credit (FTC) on the ground that Form No. 67 has been filed beyond the due date of filing of the return. We find the NFAC upheld the action of the AO, the reasons of which have already been reproduced in the proceeding paragraph. It is the submission of the ld.Counsel for the assessee that filing of foreign tax credit certificate in Form-67 is directory in nature and not mandatory and therefore the NFAC is not justified in denying the Foreign Tax Credit. 11. We find the Bangalore Bench of the Tribunal in the case of M/s. 42 Hertz software India Pvt.....

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....ed 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." 12. We further find, in the instant case, the delay in filing of the FTC certificate in Form-67 was explained to be due to non receipt of the tax deduction certificate form the foreign deductor from Zambia within time for which the said Form-67 was filed belatedly by 14 days. It was stated that the tax jurisdiction of the Zambian deductor follow different period for taxing the income and have different due dates for filing the return as compared to India. So far as the decision relied on by ld. DR in the case of Muralikrishna Vaddi(supra) is concerned, we f....