2026 (7) TMI 1875

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....r section 250 of the Income Tax Act, 1961 (hereinafter called 'the Act'). The relevant Assessment Year is 2023-24. 2. The grounds raised read as under:- 1 For that the order of the Ld. Commissioner of Income-Tax (Appeal), NFAC [CIT(A)], under section 250 of the Income-Tax Act, 1961 (Act) dated 25.11.2025 is erroneous, bad in law, and was passed ignoring the facts and merits of the case. 2.1 For that the Ld. CIT(A) erred in confirming the restriction of Foreign Tax Credit (FTC) to Rs. 8,70,22,525/- as against the eligible amount of Rs. 9,78,31,360/-which was stated to be the US Tax paid in Form No. 67 filed by the appellant within time. 2.2 For that the Ld. CIT(A) failed to appreciate that delay in filing Form N....

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....f the assessee's wife which was subsequently revised in the computation of income filed in response to notice issued u/s.142(1) of the Act and shown as income of the assessee which resulted in enhanced income of Rs. 3,83,92,903/-. 4. The assessment was completed u/s.143(3) r.w.s.144B of the Act vide order dated 11.03.2025 on the enhanced amount offered by the assessee during the course of assessment proceedings (i.e., enhanced Long Term Capital Gain of Rs. 3,83,92,903/-). However, the FTC claimed u/s.90/91 of the Act was restricted to Rs. 8,70,22,525/- as shown in Form No. 67 filed along with the return of income on 30.12.2023. The assessee during the course of assessment proceedings after offering enhanced LTCG of Rs. 3,83,92,903/- had ....

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....cation order dated 17.11.2025 submitted that the AO based on rectification application filed by the assessee had granted the benefit of FTC to the full extent of Rs. 9,78,31,360/-. The Ld.AR submitted that in light of the rectified order of the AO dated 17.11.2025, assessee does not have any grievance. However, before the appeal before the FAA could be withdrawn, the FAA has passed the impugned order. The Ld.AR relied on the judgment of the Hon'ble Madras High Court in the case of Venkatanarayanan Somayaji Lakshminarasimha v. PCIT in W.P. No. 28199 of 2024 dated 04.04.2025, in support of his contention that assessee was under bonafide impression that FTC could be allowed automatically in the return form itself and there was no necessity to ....

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....tion petition stating that the Form 67 was filed on 30.12.2023 before the due date of filing and had also relied upon the Madras High Court decision in Venkatanarayanan Somayaji Lakshminarasimha V PCIT(W.P. No. 28199 of 2024 dated 04.04.2025) stating the Foreign Tax Credit has to be given credit irrespective of the filing date and as Filing of FTC in terms of the Rule 128 is only a directory in nature. Also the assessee mentioned that the addition of Rs. 3,83,92,903/- was added twice in the computation of income The claim of the assessee was considered. Since the mistake is apparent from record, the order u/s. 154 is passed as under: The tax computation is as under: Income Assessed u/s. 143(3) r.w.s.144B 37,09,78,393....