TaxTMI 
TaxTMI 
2024 (10) TMI 647
X X X X Extracts X X X X
X X X X Extracts X X X X
....enience, both these appeals were heard together and are being disposed off by this common order. ITA No.760/Hyd/2024 - A.Y 2020-21 2. The brief facts of the case are that the appellant is an individual and is a resident for the purpose of I.T. Act, 1961. The appellant is a salaried employee and was in receipt of salary from Mastech Digital Private Limited. The appellant was on an assignment to the USA during the year and was in receipt of salary from Mastech Digital Technologies Inc, USA. The appellant being a resident for the A.Y 2020-21, his global income was offered to tax in India. Accordingly, salary received in respect of the services rendered outside India was offered to tax in India. The appellant had also filed tax return in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....abad Benches in the case of Shri Nagababu Kuchibhotla vs. Income Tax Officer in ITA No.28/Hyd/ 2024, dated 27/02/2024, where identical issue has been considered by the Coordinate Bench and held that filing of Form 67 for claiming Foreign Tax Credit is only directory in nature but not mandatory and thus, for belated filing of Form 67, credit for taxes paid outside India cannot be denied. Therefore, he submitted that the FTC claimed by the assessee towards taxes paid outside India should be allowed. 6. The learned DR, on the other hand, supporting the order of the learned JCIT/Addl.CIT (A) submitted that as per Rule 128(9) of the I.T. Rules, 1962, filing of Form 67 on or before the due date for filing of the return of income u/s 139 is manda....
X X X X Extracts X X X X
X X X X Extracts X X X X
....The relevant findings of the Tribunal are as under: "12. We find identical issue had come up before the Coordinate Bench of the Tribunal in the case of Govinda Rajulu Dhondu (Supra) wherein the Tribunal, following the decision of the Coordinate Bench of the Tribunal in the case of Baburao Alturi vs. Dy.CIT in ITA No.108/Hyd/2022 and distinguishing the decision of the Vizag Bench of the Tribunal in the case of Muralikrishna Vaddi vs. ACIT/Dy.CIT (Supra) has restored the issue to the file of the Assessing Officer with a direction to allow the FTC after due verification. The relevant observation of the Tribunal from Para 8 to 9 read as under: "8. We have heard the rival arguments made by both the sides, perused the orders of the AO and the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e assessee that filing of foreign tax credit certificate in Form-67 is directory in nature Baburao Atluri 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. Ltd (supra) while deciding an identical issue has held that FTC cannot be denied to the assessee, where the assessee filed FTC in Form No.67, although belatedly since filing of such Form 67 is not mandatory but directory in nature. The relevant observation of the Tribunal from para 6 onwards reads as under:- "6. There is no dispute that the Assessee is entitled to claim FTC. On perusal of provisions of Rule 128 (8) & (9), it is clear that, one of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 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, Baburao Atluri far as the decision relied on by ld. DR in the case of Muralikrishna Vaddi(supra) is concerned, we find there is a delay of more than two years without any valid and reasonable cause. Therefore, the said decision in our opinion cannot be applicable to the facts of the present case. In any case, when there are two view possible, the view which is favourable to the assessee has to be followed as held by Hon'ble Supreme Court in the case of CIT vs. Vegetable Products Ltd. reported in (1972) 88 ITR 192. Since, the assessee in the instant case has filed F....