2026 (3) TMI 1687

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....sue that is raised is whether the First Appellate Authority (FAA) had erred in law and on facts in not granting Foreign Tax Credit (FTC) of Rs. 5,73,078/-. 3. Brief facts of the case are as follows: The assessee was employed with Continental Automobile Components India Pvt. Ltd. during the period 01.08.2018 to 31.07.2019. The assessee was sent on assignment to Germany by his employer. For the assessment year 2020-21, return of income was filed on 07.12.2020 declaring total income of Rs. 37,41,850/-. The assessee had claimed FTC for the taxes paid in Germany as per section 90 of the Act. The return of income was processed u/s. 143(1) of the Act on 24.12.2021. In the said intimation issued u/s.143(1) of the Act, the FTC claimed amounting t....

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....Therefore, the return of income was processed by Centralized Processing Centre (CPC) electronically and intimation u/s 143(1) of the Act on 24.12.2021 was passed disallowing the claim of FTC. Thereafter the Appellant filed the Rectification request which was rejected vide 154. Order dated 11.07.2023 against which the present appeal has been filed. The Appellant has not filed Form 67 before the time allowed under section 139(5) of the Act. The word "shall" have been used in the rule 128(9) therefore the provisions of rule 128 are mandatory in nature and not directory. From the above, it is apparent that unless there is an order condoning the delay in filing Form No. 67 by the PCIT under Section 119(2)(b), such Form No. 67 can't be taken ....

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.... of Real Time Data Services Pvt. Ltd., (supra), had held that when petitioner had failed to upload Form 67 within due date of filing of the return, it is only a technical or venial breach. It was further held by the Hon'ble Delhi High Court that the petitioner has substantial right of getting FTC and withholding the same is without any authority and would tantamount to unjust enrichment. The Hon'ble Court in the said case directed the AO to examine the Form 67 (which was admittedly filed subsequent to the intimation issued u/s. 143(1) of the Act) and pass a speaking order in accordance with law. 9. The Mumbai Bench of the Tribunal in the case of Tabassum Abdulla Inamdar, (supra) had held that filing of Form 67 within the due date prescri....

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....es not provide for any consequence, if not complied with. 5.1. The issue before us is no longer res integra as held by various Coordinate Benches of ITAT, few of which are listed below: i. Sonakshi Sinha vs. CIT [2022] 142 taxmann.com 414 (Mum) ii. Deepak Shimoga Parmaraju vs. ADIT [2024] 162 taxmann.com 96 (Bang) iii. Brinda Ramakrishna vs. ITO [2022] 135 taxmann.com 358 (Bang) 6. Considering the factual matrix on record as well as pending application before the ld. JAO u/s. 154, and the judicial pronouncements listed above read with Rule 128 of the Rules, we remit the matter back to the file of ld. JAO for a limited purpose of verification of the records and allow the credit for foreign taxes p....