2025 (11) TMI 1492

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....ent has originally efiled his return of Income under Section 139(1) of the Income Tax Act, 1961 ('Act' for short) on 31.08.2019 and subsequently the return of Income was revised on 09.11.2019 declaring the taxable Income of Rs. 1,28,94,060/- by claiming relief under section 90/90A of the Act, of Rs. 12,38,077/-. The Assessee has also filed Form No. 67 on 19.04.2021. The return of Income was processed by the CPC u/s 143(1) of the act vide intimation dated 19.03.2021. The CPC has accepted return of income filed by the assessee of Rs. 1,28,94,060/- and denied the claim of Foreign Tax Credit of Rs. 12,38,077/- and raised a demand of Rs. 16,08,742/-. Against the intimation order dated 19.03.2021, assessee filed application under section ....

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....of income should not be considered as mandatory in nature. 011. The learned authorised representative submitted that honourable Supreme Court was seized of the matter where in the same subsection twin conditions were mentioned, the honourable High Court and lower appellate authorities considered, one of the condition as mandatory and one of the condition as directory. He submitted that here section 90 or 91 does not lay down any condition of filing any form. The requirement of filing of the form is provided under rule 128 of The Income Tax Rules. Therefore, here, the situation is quite different. He submitted that these conditions have been considered by the coordinate bench in case of Brinda Ramakrishna. 012. We have care....

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....filing of the returns and that this requirement cannot be treated as mandatory, rather it is directory in nature. This is because, Rule 128(9) does not provide for disallowance of FTC in case of delay in filing Form No. 67. Same view is also taken by a coordinate division bench in Vinodkumar Lakshmipathi V CIT(A) NFAC Bang/2022 06.09.2022. It is well settled that while laying down a particular procedure, if no negative or adverse consequences are contemplated for non-adherence to such procedure, the relevant provision is normally not taken to be mandatory and is considered to be purely directory. Admittedly, Rule 128 does not prescribe denial of credit of FTC. Further the Act i.e. section 90 or 91 also do not prescribe timeline for filing o....