TaxTMI 
TaxTMI 
2025 (9) TMI 213
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....24 wherein the appeal filed by the assessee against the intimation passed u/s. 143(1) of the Income-tax Act, 1961 [the Act] dated 6.8.2021 issued by CPC, Bengaluru [ld. AO] was partly allowed. 2. The assessee, aggrieved with the same, has preferred this appeal raising the following the two effective grounds of appeal:- "2. Grounds relating to claim of Foreign Tax Credit: 2.1 The lower authorities have erred in not allowing relief under section 90 in respect of foreign taxes of Rs. 34,05,019. 2.2 The learned JCIT(A) has erred in (i) confirming the disallowance for the reason that the Appellant did not claim the credit of foreign taxes in the return of income nor in the application for rectification unde....
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....is eligible to carry forward business loss of AY 2018-19 only to the extent determined in the order passed under section 143(3) for the said assessment year." 3. The brief facts of the case show that assessee is a private limited company engaged in the business of providing innovative technology based solutions in education and e-learning space. It filed return of income on 13.02.2021 declaring a loss of Rs. 12,12,46,777 as per normal computation and book profit was disclosed u/s. 115JB at Rs. 278,63,938. This return was processed and intimation was issued u/s. 143(1) on 6.8.2021 wherein amongst other issues, the assessee was denied the benefit of claim of foreign tax credit of Rs. 34,05,090 and restricted the grant of carry forward loss....
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.... 26,07,03,459, the ld. CIT(A) noted that assessee has claimed carry forward of loss which was disallowed by the CPC. The ld. CIT(A) directed the ld. AO to allow the benefit of carry forward losses as determined in scrutiny assessment for AYs 2018-19 and 2020-21 as per rectification order dated 20.4.2022 after verification of records. The appellate order was passed on 30.9.2024. Aggrieved with the same, the assessee is in appeal. 6. Ground No.1 is general in nature, hence no arguments are advanced and therefore the same is dismissed. 7. Ground No.2 is with respect to the claim of foreign tax credit of Rs. 34,05,019. The facts relating to the same are that in the original return filed by the assessee in Schedule TR of the return of inco....
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.... it has been held that if Form 67 is submitted even during the assessment proceedings, assessee is entitled to claim foreign tax credit. He submits that appeal proceedings is a process of assessment of total income only and therefore when Form 67 was submitted before the CIT(A), the credit should have been granted which is available according to DTAA and Income tax Act. He further referred to the decision of coordinate Bench in the case of Krishnakumar Balasankara Subramanian v. DCIT, 165 taxmann.com 500 wherein also it has been held that filing of Form 67 is directory in nature. He further relied upon the decision of coordinate Bench in Manoj Kumar Srivastava v. ACIT, 163 taxmann.com 296 and Priya Savina Murzello v. DCIT 148 taxmann.com 47....
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.... ld. CIT(A) on 19.11.2021. Therefore, it is apparent that Form 67 was filed by assessee after the filing of appeal before the ld. CIT(A). Therefore, the issue is that, whether Form 67 filed by assessee claiming foreign tax credit during the pendency of the first appeal, even then foreign tax credit can be allowed to the assessee or not? 12. As already seen, according to provisions of Rule 128(9) Form 67 shall be furnished on or before the end of relevant assessment year. The assessment year is AY 2020-21 which has already ended on 31.3.2021. The Hon'ble Madras High Court in Duraiswamy Kumaraswamy v. PCIT, 156 taxmann.com 445 in para 11 has categorically held that filing of Form for foreign tax credit in terms of Rule 128 is only director....