MAHUA BAGCHI,KOLKATA vs. A.C.I.T., CIRCLE - 61, KOLKATA, KOLKATA

This appeal preferred by the assessee is against the order passed by Learned Commissioner of Income-tax (Appeals)-NFAC, Delhi [hereinafter referred to Ld. ‘CIT(A)’] for the Assessment Year (in short ‘AY’) 2017-18.

The only issue raised by the assessee is against the order of Ld. CIT(A) confirming the order passed by the Assessing Officer (in short ld. 'AO') u/s 154 r.w.s. 143(3) of the Income Tax Act, 1961 (in short the 'Act') wherein the claim of foreign tax relief amounting to Rs. 17,72,470/- was not allowed which was claimed u/s 90/90A of the Act.

Brief facts of the case are that the assessee is an employee of Cognizant Technology Solutions India Pvt. Ltd. since 1999 and was transferred to UK in May, 2008 and worked in UK till September, 2020. Thereafter the assessee was again transferred to India. The assessee got benefits from the employer in the form of equity shares granted to her under Employee Stock Option Plan (in short ‘ESOP’) and restricted stock. These stocks got vested over a period of four years if the assessee worked for the said employer company under ESOP. The profit which goes to the assessee would be determined on the basis of grant price of $19.66 and the sale price. Accordingly, the tax was deducted in UK amounting to Rs. 17,72,470/- which was claimed by the assessee as foreign tax u/s 90 of the Act. However, Form-67 as required to be filed on or before filing the return of income u/s 139(1) of the Act was not filed. The assessee filed the return of income after the due date and also filed Form-67 with the delay of two and a half years from the date of filing return. The AO CPC passed the order u/s 143(1) of the Act dated 28.03.2019 and the claim was allowed in respect of foreign tax. However, when the assessee filed the form 67 in respect of foreign tax deducted, the AO by passing order u/s 154 of the Act