2025 (8) TMI 1268

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... confirming the action of the Ld. Assessing Officer, CPC (Ld. AO) of not allowing Foreign Tax Credit ('FTC") of Rs. 3.52,291 allowable as per Section 90 of the Income Tax Act, 1961 ('Act') read with Article 25 of the India-USA Double Taxation Avoidance Agreement ('DTAA') read with CBDT circular 333 dated 02 April 1982, in the Intimation under Section 143(1) of the Act ('Act') on the premise that Form 67 in support of FTC was filed beyond the due date of filing of the Return of Income under Section 139(1) of the Act. It is prayed that the Ld. Jurisdictional Assessing Officer ('JAO) be directed to allow FTC of Rs. 3,52,291 as the order of the Ld. ADDL/JCIT(A) is contrary to the decision of the Hon'....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....case of City Manager Association Vs. DCIT, CPC Bengaluru, (ITA No.1345/Ahd/2019); Order of Hon'ble ITAT in the case of Paris Elysees India Private Limited Vs. Deputy Commissioner of Income Tax ITA No. 357/JPR/2022; Decision of the Hon'ble Supreme Court in the case of AC IT Vs. Rajesh Jhaveri Stock Brokers (P.) Ltd [2007] 291 ITR 500. It is, therefore, prayed that the LD. J AO be directed to allow FTC of Rs. 3.52,291. Ground No. 3: On the facts and circumstances of the case and in law, the Ld. ADDL/JCIT(A) ought to have held the entire 143(1) proceedings as invalid in law as the Ld. AO had not followed the provisos to Section 143(1)(a) of the Act of giving opportunity to the Appellant to d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....by the Ld. ADIT, CPC. In the rectification order also similar to intimation u/s 143(1) of the Act global income of the assessee has been considered however, the Assessing Officer denied the global income from credit of foreign taxes. Also, the FTC as appearing in the impugned intimation under as computed u/s 143(1) of the Act column is Rs. 0/- whereas in the return of income FTC claimed u/s 90 of the Act is Rs. 3,52,291/-. Aggrieved with the assessment order passed by the Id. Assessing Officer in disallowing the foreign tax credit, the assessee preferred appeal before the Id. CIT(A) and the Id. Addl./JCIT(A) dismissed the appeal of the assessee on account of the fact that the assessee has not filed Form No.67 before the time limit specified....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....refore, the ld. Assessing Officer and ld. Addl./JCIT(Appeals) rightly made the disallowance. Therefore, ld. D.R. pleaded to uphold the orders passed by the lower authorities. 6. I notice that this issue came up for adjudication before various Tribunals and also the ld. Counsel for the assessee has cited the decision of other Tribunals. All the Tribunals have been consistently held that filing Form 67 is merely discretionary and merely directory in nature and even if it is filed belatedly, the assessee deserves the foreign tax credit. The ld. Counsel for the assessee has strongly relied on the decision of the Coordinate Bench in the case of Sonakshi Sinha -vs.- CIT in ITA No. 1704/Mum/2022 dated 28.09.2022 for the assessment year 2018-19 ....