TaxTMI 
TaxTMI 
2026 (4) TMI 768
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....ng to Assessment Years 2018-19, 2019-20 and 2020-21, respectively. The word 'Act' herein this order would mean Income Tax Act, 1961. 2. All the three appeals of the assessee are centering around the common issue of denial of Foreign Tax Credit (in short 'FTC') and hence for the purposes of convenience were heard together and are being disposed of by this common order. For the purposes of facts and figures, the assessee's appeal for AY 2018-19 is taken as lead year and the decision taken therein shall apply mutatis mutandis for AY 2019-20 and 2020-21. 3. The assessee has raised following grounds of appeal for AYs 2018- 19, 2019-20 and 2020-21:- Grounds of appeal for AY 2018-19 1. The learned CIT(A) erred in upholding the or....
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.... the Income-tax Act, 1961. 2. The learned CIT(A) erred in holding that filing of Form 67 on OR before the due date u/s 139(1) was a mandatory condition for granting FTC. 3. The learned CIT(A) failed to appreciate that Rule 128(9) does not prescribe denial of FTC for delay in filing Form 67, and that the rule is procedural and directory. 4. The learned CIT(A) erred in disregarding binding and persuasive judicial precedents. 5. The learned CIT(A) erred in upholding the order of CPC u/s 154 without appreciating that CPC failed to provide any reasoning. 6. The learned CIT(A) erred in rejecting contention of the appellant on violation of natural justice. 7. The learned CIT(A) failed to apprec....
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....tisfied all substantive requirements for claiming FTC. 9. The learned CIT(A) conclusion that the amendment to Rule 128(9) is prospective is erroneous. 10. The order passed by the CIT(A) is arbitrary, non-speaking. and mechanically upholds the CPC action. 6. We have heard rival submissions in the light of material placed on record. The assessee is in profession of providing actuarial services. Return of Income for AY 2018-19 was filed declaring income of Rs. 53,22,940/-. Original tax liability of Rs. 15,96,830/-, assessee had claimed FTC credit of Rs. 2,65,500/-. The CPC raised demand under section 143(1) of Rs. 3,42,838/-, wherein, the FTC credit was not granted. The assessee moved 154 which was rejected. The ld. CIT(A)....
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....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 Rule nowhere provides that if the said Form 67 is not filed within the above stated time frame, the relief as sought for by the assessee under section 90 of the Act would be denied. 6.4 If the intention of the Legislature was to deny the FTC, 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. There are many sections in the Act which specifically deny deduction or exemption or relief in case the return is not filed within prescribed time, such as, sect....