2026 (3) TMI 1122

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....ral Processing Center (CPC) passed the rectification order under section 154 of the Income tax Act,1961 confirming following additions / adjustments made in the tax liability of the appellant while processing the income tax return u/s 143 (1) of the Income Tax Act, 1961: Addition Amount (Rs.) Tax liability in Return 0 Addition on account of disallowance of foreign tax credit claimed u/s 90 of DTAA due to delay in filing of Form 67 47,309 Addition on account of Interest on above 8,351 Net Tax Liability 55,660 2. That the Learned ADDL / JCIT (A) -2, Office of the Commissioner of Income Tax Appeal has erred both on facts and law in confirming disallowance of the Foreign Tax credit claimed under section 90....

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....dit (for short, FTC) due to delay in filing of Form 67 by the assessee. 3.1 Brief facts are that the assessee filed his return for A.Y. 2023-24 on 31.10.2023, declaring global taxable income of Rs. 43,67,660/-. This included salary income of Rs. 2,11,717/- earned in Canada besides interest and dividend. Total Foreign Income of Rs. 2,25,209/- was duly declared and under DTAA between India and Canada, the assessee claimed relief u/s 90/90A of Rs. 47,309/- being tax paid on such foreign income. However, Form No. 67 was not submitted within the prescribed time limit as a result of which the claim for FTC was disallowed by the CPC. After the rejection of rectification application by the CPC, the assessee filed an appeal before the Ld. CIT(A).....

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....oard of Direct Taxes or a competent authority under Section 119 of the Act of 1961, that too in a case when such power is invoked. 6. Heard learned counsel for the parties. 7. Admittedly, the petitioner has not furnished Form No. 67 up to the due date of filing return and it realised such fault only when its return was processed and when its Foreign Tax Credit of Rs. 1,01,34,300/- being TDS on foreign receipts was not allowed by the AO. On inquiry, it found that the same had been rejected because Form No. 67 was not uploaded within the time prescribed. 8. We are of the view that may be the petitioner omitted or failed to upload Form No. 67 by the due date of return but simply because of this technical or venial br....