TIPS MUSIC LTD,MUMBAI vs. ASST. DIRECTOR OF INCOME TAX, CPC, BENGALURU, BANGALORE

This appeal by the assessee is preferred against the order of the ld. CIT (A)/Addl./JCIT(A), Faridabad [hereinafter “the ld. CIT(A)”], dated 21/12/2024, pertaining to AY 2019-20.

The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the denial of foreign tax credit (FTC) of Rs. 47,36,704/- on the ground that Form No. 67 was not filed along with return of income. As per Rule 128(9) of the Income Tax Rules, 1962 (hereinafter “the Rules”). 3. Briefly stated the facts of the case are that the assessee filed its original return of income on 13/09/2019, however, the assessee did not file Form 67 for claim of FTC on income received from U.K. & Thailand which was offered for tax in India. Subsequently, the assessee filed a revised return of income along with Form 67 in support of this claim of Tips Music Ltd. 2 FTC. The credit for FTC was denied while processing the return by the CPC. The assessee preferred appeal before the ld. CIT(A) but without any success. The only reason given by the ld. CIT(A) is that the assessee is not entitled for credit of FTC u/s 90 of the Act as Form 67 was not furnished by the assessee while filing the ITR u/s 139(1) of the Act. 4. We have carefully considered the orders of the authorities below. We are of the considered view that neither Section 90 of the Act nor the DTAA provides that FTC shall be disallowed for non-compliance with any procedural requirements. We are of the considered view that FTC is assessee’s vested right as per articles 24(1)(a) and 23 of the DTAA r.w.s. 90 of the Act. The same cannot be disallowed for non-compliance with the rules procedural requirements. 4.1. In fact the assessee has subsequently filed Form 67 with the revised return of income which cannot be rubbished. Therefore, in the interest of justice and fairplay, we direct the AO to verify Form 67 and allow the FTC to the assessee. 5. In the result, appeal of the assessee is allowed as per above directions. Order pronounced in the Court on 4th June, 2025 at Mumbai. (SAKTIJIT DEY) ACCOUNTANT MEMBER