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Facts
The assessee filed an original return of income on August 1, 2017, claiming Foreign Tax Credit (FTC). A revised return was filed on September 17, 2018, claiming a reduced FTC. The Assessing Officer disallowed the FTC because Form 67, a mandatory prerequisite, was not filed with the original return. The CIT(A) upheld this decision.
Held
The Tribunal held that while Form 67 is procedurally important, the non-filing with the original return was due to the procedure not being notified by the CBDT at that time. The assessee complied with the procedure upon revision and there was no doubt regarding the quantum of the claim. Therefore, the FTC should be allowed.
Key Issues
Whether the disallowance of Foreign Tax Credit (FTC) due to non-filing of Form 67 with the original return is justified, especially when the procedure for filing Form 67 was notified after the due date of the original return.
Sections Cited
90, 90A, 139(1), 143(3), 234C
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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI KESHAV DUBEY
Per Laxmi Prasad Sahu, Accountant Member :
This is an appeal filed by the assessee against CIT(A)’s order vide DIN & Order No: ITBA/NFAC/S/250/2025-26/1077855182(1) dated 28.04.2025.
The sole issued raised by the assessee is with regard to Foreign Tax Credit (FTC) not given in terms of section 90/90A of the Act for not filing Form 67 along with the original return filed by the assessee.
Briefly stated, the facts of the case are that the assessee filed return of income on 01.08.2017 declaring income of Rs.3,83,49,150/- and claimed the foreign tax credit of Rs.27,39,914/- under section 90/90A of the Act. Subsequently, assessee has revised the original return of income on 17.09.2018 declaring same income and FTC was claimed at Rs.24,86,890/- under section 90/90A of the Act. The return was processed and the case was selected for scrutiny under CASS. In this regard, various notices were issued to the assessee. The assessee submitted reply which is incorporated by the AO in his Order and AO observed that FTC can be given only if the assessee has complied under Rule 129 as laid down by the Income Tax Rules, 1962. Assessee furnished From 67 on 17.09.2018 and CBDT in September 2019 notified From No.67 for claiming FTC and FTC was denied. Against this assessee filed appeal before the learned CIT(A). Assessee also filed written submissions which is incorporated by him but FTC was denied.
Aggrieved from the Order of the CIT(A), assessee filed appeal before the Tribunal. The learned Counsel reiterated the submissions made before the lower authorities and filed written synopsis which is as under:
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In addition to the above written synopsis he submitted that on the date of filing of original return, it was not mandatory to file Form 67 which is notified by the CBDT on 17.09.2017 after filling of income tax return. Immediately after the assessee came to know about the same, assessee revised return of income and claimed FTC in Form 67. Therefore, the claim of FTC cannot be denied to the assessee and he referred to various judgments as cited in the written submissions.
The learned DR relied on the Order of the lower authorities.
Considering the rival submissions, we noted that Form 67 was notified by CBDT on 19.09.2017. Assessee filed original return of income on 01.08.2017. Later on, he revised return of income on 17.09.2018 claiming FTC of Rs.24,867,890/- under section 90/90A of the Act. Thereafter, the CBDT vide notification has prescribed the procedure for filing Form 67 for claiming FTC. But till the date of filing of return of income there was no notification in this regard and there is no doubt on the quantum of claim of the assessee. Considering the above case law cited by the assessee and facts of the case, we allow appeal of the assessee.
In the result, appeal filed by the assessee is allowed.