2026 (7) TMI 1870

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....onal Faceless Appeal Centre-NFAC, Delhi. 2. The effective issue raised by the assessee is that the learned CIT(A) erred in confirming the disallowance of Foreign Tax Credit of Rs. 2,91,145/- otherwise allowable under India-USA DTAA read with section 90 of the Act. 3. The necessary facts are that the assessee is an individual. During the assessment year 2019-20, the assessee was employed with Alstom Transport India Ltd and was deputed in USA for short period starting from 1st December 2018 to 30th November 2019. For deputation in USA, the assessee drawn salary from Alstom Transportation Inc and tax on the same was paid in USA. The amount of tax paid in the USA on the salary drawn for the period 1st December 2018 to 31st March 2019 was ....

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.... was beyond the due date specified. Therefore, considering the explicit provisions of Rule 128(9) of the Income Tax Rule, the assessee is not eligible for credit of FTC. Hence, the ld. CIT-A dismissed the appeal of the assessee. 6. Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before the Tribunal. 7. The learned AR before us submitted paper book running from pages 1 to 175 and contended that the lower authorities have erred both in law and on facts in denying the claim of the assessee. It was argued that the adjustment made in the intimation under section 143(1) of the Act, which was confirmed by the learned CIT(A), is bad in law and liable to be quashed. The ld. AR pointed out that the assessee had dul....

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....at the assessee had indeed paid tax in the USA on the foreign income offered to tax in India. Thus, the requirement of Rule 128(8)(ii) of the Income-tax Rules, 1962, stands duly complied with. 10.2 It is a settled principle that denial of substantive benefit like Foreign Tax Credit, which is guaranteed under section 90/91 of the Act read with applicable DTAA, cannot be made merely on technical or procedural lapses, particularly when the assessee has subsequently furnished all the relevant details and evidence. Several Hon'ble High Courts as well as the Tribunal in various decisions have held that the filing of Form 67 within prescribed time limit i.e. on or before due date specified u/s. 139(1) of the Act (prior to amendment applicable f....