2025 (7) TMI 741

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....scribed u/s 90 r.w. Rule 128. As per rule 128 (8) it is clearly mentioned that FTC shall be allowed after furnishing Form 67 by the assessee. Further, the case is covered under exception 3.1 of circular 5/2024. 2. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of hearing of the appeal 3. Briefly stated, the facts of the case are that the return of income filed by the assessee was processed by Centralized Processing Centre (CPC) electronically and intimation under section 143(1)/154 of the Income-tax Act, 1961 [the Act, for short] on 25th August, 2022 was passed disallowing the claim of FTC of Rs.25,30,435/- 4. Aggrieved by this order, the assessee went in appeal before the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd DTAA provides for credit for foreign taxes. Article 22(2) is relevant in the present context. (PB 27-41) Same is extracted below: "2. In India double taxation shall be eliminated as follows: Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Finland, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Finland. Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Finland". 4.7. The judgement (supra) further quoted that "It is submitted that section 90 of the Act read with Artic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ides that Form 67 should be filed on or before the due date of filing the return of income as prescribed under section 139(1) of the Act. However, the said Rule nowhere provides that if the said Form 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. In case the intention of the Act or Rule was to deny the FTC, then in that eventuality either the Act or the Rules would have specifically provided that the FTC would be disallowed if the assessee does not file Form 67 within the due date prescribed under section 139(1) of the Act. Thus, filing of Form 67, is a procedural/directory requirement and is not a mandatory requirement. Therefore, violation of procedural....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o 67 is not mandatory but it is directory. Accordingly, we restore the disputed issue to the file of the CIT(A) to adjudicate afresh on merits considering the observations in above paragraphs and the ratio of judicial decisions. Further the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal and allow the grounds of appeal of the assessee for statistical purposes." 4.10. Mumbai bench of Hon'ble ITAT in the case of Nirmala Murli Relwani Vs ADIT ITA No. 2094/Mum. /2022 was held that- "Mere delay in filing Form No. 67 as per the provisions of Rule 128(9) will not preclude the assessee from claiming the benefit of foreign tax credit in respect of tax paid o....