MADHU KHATRI, SINGAPORE,SINGAPORE vs. DCIT CIRCLE 3(3)(1), BANGALORE, BANGALORE
Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SHRI WASEEM AHMED & SHRI PRAKASH CHAND YADAVAssessment Year : 2018-19
PER PRAKASH CHAND YADAV, JUDICIAL MEMBER
Present appeal of the assessee is arising from the order of the Ld.CIT(A) dated 03/12/2024 and relates to A.Y. 2018-19. 2. The brief facts of the case are that the assessee is an individual and derives income from sources viz., salary, house property, capital gain and other sources. The assessee filed her return of income for the year under consideration on 26/07/2018 and later on revised the return of income on 27/08/2018. Page 2 of 3
3. During the year under consideration, the assessee has earned dividend income to the tune of Rs. 27,08,014/- outside India. In relation to this dividend income, the assessee has claimed credit of foreign tax paid by the assessee, in terms of the provisions of the section 90 of the IT Act. Since assessee could not attach Form 67 with the return of income, the CPC, years. Deciding the appeal in favour of the assessee, the Coordinate Bench has observed as under:
“9. In the present case, the claim of the assessee was declined by the Ld. CIT(A) on the basis that Form No. 67
was filed after a gap of five years. Having regard to the Page 3 of 3
delineation made and in consonance with the view expressed by the Co-ordinate Benches, we hold that the claim of FTC does not get controlled solely by the delay in filing of Form 67 prescribed under rule 128(9) of the Income Tax Rules. Hence, we set aside the action of the Ld. CIT(A) and direct the Assessing officer to take cognizance of Form No.67 so filed and grant FTC as may be entitled to the assessee in accordance with law.
Therefore, following the binding precedents, we here by direct the AO to allow benefit of Foreign Tax Credit subject to such enquiries and verifications as may be considered expedient.”
Respectfully following the verdict of Coordinate Bench, we hereby restore the matter to the file of AO for allowing the credit of foreign tax paid by the assessee with the direction after verification of Form 67. 9. In the result, the appeal filed by the assessee is allowed for statistical purposes as indicated above.
Order pronounced in the open court on 27th March, 2025. (WASEEM AHMED)
Judicial Member
Bangalore,
Dated, the 27th March, 2025. /MS /
Copy to:
1. Appellant
Respondent 3. CIT
DR, ITAT, Bangalore
Guard file
CIT(A)
By order