YURAAZ ARORA,MUMBAI vs. WARD 34(1)(1), MUMBAI

Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of Learned Commissioner of Income Tax (Ld. CIT(A)) dated 26.07.2024 for A.Y. 2019-20. The assessee has raised the following grounds of appeal: “

1. The Hon'ble Addl./JCIT(A)-1 Jaipur erred in confirming the action of AO in not allowing Foreign Tax credit of Rs 48,241/- u/s 90 of the Income Tax Act, 1961 (the Act) by holding that Form 67 has not been filed on or before the due date of filing the return of income u/s 139 of the Act. The Appellant submits that delay in filing Form 67 is procedural in nature and cannot be a reason to deny the Foreign Tax Credit to the Appellant, hence, the Appellant submits that he shall be allowed the FTC as claimed in return of income filed u/s 139 of the Act. The Appellant craves leave to add, to alter or to amend the aforesaid ground of appeal.”

2. Rival submissions of both the parties have been heard and record perused. The Ld. AR of the assessee submits that very short question of law is involve in the present appeal. The assessee is an individual and earned salary income during Shree 1008, Shantinath Digamber Jain Trust the relevant financial year i.e. 2017-18. The time period for filing return of income under section 139(1) for AY 2018-19 was up to 31.06.2019. The assessee filed his return on 31.08.2019 declaring income of Rs. 7,05,400/-. In the return of income, the assessee claimed credit of foreign tax of Rs. 48,241/-. The return was processed by Central Processing Center (CPC) on 26.05.2021 and such foreign tax credit was not allowed. The assessee filed application under section 154 for rectification but the application was also rejected. The application was not allowed credit of foreign tax for the reasons that Form 67 was filed/ uploaded beyond 26 days of prescribed period. The form 67 was filed/ uploaded on 26.09.2029. The Ld. AR of the assessee submits that furnishing/uploading Form 67 is a procedural lapse and could be regularized/ condoned as Form 67 was available at the time of processing of return of income as well as during the first appellate stage. The Ld. CIT(A) in para 5.1.2 of the order recorded all such fact and not accepted the appeal by taking view that Form 67 was not made with income tax return. The Ld. AR of the assessee submits that Hon’ble Madras High court in Duraiswamy Kumaraswamy V. PCIT in W.P.No. 5834 of 2022 dated 06.10.2023 on similar set of Act, wherein there was delay of 204 days in furnishing Form 67 allowed relief to the assessee. The Ld. AR submits that his case is squarely covered by the decision of Hon’ble Madras High Court in Duraiswamy Kumaraswamy V. PCIT (supra).