TaxTMI 
TaxTMI 
TaxTMI 
2025 (1) TMI 1485
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....ises out of the assessment order dated 03.06.2021 under section 143(3) of the IT Act, 1961 of the Income Tax Act 1961 [hereinafter referred as 'the Act']. 2. Aggrieved by the order of the Ld. CIT(A) the assessee is in appeal before us by raising the following grounds: "1.1 That on the fact and circumstances of the case, the CIT(A) was not justified in not accepting the claim of Foreign Tax Credit of Rs. 74,46,166/ based on TDS Certificate u/s 90 of the Income Tax Act, 1961 read with Article 23 of the Indo Japan DTAA made by the Assessing officer in total disregard to the settled legal position. 1.2 That having accepted that Income represented by TDS was duly subjected to tax and the claim of TDS being corroborated from TDS Certificate ....
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....ngaged in business of providing reliable green energy for industrial units. The assessee company filed its return of income on 18-08-2108 declaring total income of Rs. 6,57,68150/- after claiming Foreign Tax Credit of Rs. 74,46,166/- under Section 90 of the Act. However, the assessee did not furnish Form 67 before filing the return of income as required under Rule 128 of the Income Tax rules. The case of the assessee was selected for regular scrutiny on the issues of Double taxation relief under Sections 90/91 of the Act and the Expenditure by way of Penalty or Fine for Violation of any law. A notice under Section 142(1) of the Act was issued and after considering the submission made by assessee company completed the assessment after making....
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.... of the Act, which is recently amended and provided for filling before the end of the assessment year. However, the rule no where provides that if the said Form No. 67 is not filed within the above stated time frame the relief as sought by the assessee under Section 90 of the Act would be denied. Filing of Form 67 is a procedural requirement and is not a mandatory requirement. 7. Ld Sr. DR has submitted that the assessee has not provided the Form No 67 within time. He has further submitted that the Form No 67 was filed after 5 years, which cannot be considered at this stage, he sought the appeal be dismissed 8. In the case of Sumedha Arora vs Income -Tax Officer [2023]154 taxmann.com 535 (Delhi-Trib) the Co-ordinate bench held as under: ....
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....DTAA. The assessee further contended that provisions of DTAA override the provisions of the Income Tax Act and thus denial of vested right to claim the FTC is in direct infringement of the tax treaty. 8. Rule 128 (8) and (9) provides that the credit for any foreign tax shall be allowed on furnishing of Form 67 on or before due date of filing the return of income as prescribed under Section 139(1) of the Act. The question thus arises as to whether where a substantial compliance has been made and Form 67 has been eventually filed albeit after the due date of filing of return of income under Section 139(1) of the Act, the denial of FTC would be justified. In this regard, the assessee contends that Rule 128 provides machinery for seeking reli....
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.... ITD 263 (Mum. Trib.)/[ITA no.1704/Mum/2022 order dated 20th September, 2022] and host of other judgments referred to and relied upon. 10. Having regard to the delineation made and in consonance with the view expressed by the Co-ordinate Benches, we hold that claim of FTC does not get controlled solely by the delay in filing of Form 67 prescribed under Rule 128(9) of the Income Tax Rules. Hence, we set aside the action of the CIT(A) and direct the Assessing Officer to take cognizance of Form 67 so filed and grant FTC as may be entitled to the assessee in accordance with law." 9. In the present case, the claim of the assessee was declined by the Ld. CIT(A) on the basis that Form No. 67 was filed after a gap of five years. Having regard to....