SHRI SARTH KUMAR SEKKANOR MURUGESAN,CHENNAI vs. ITO, NCW-22(4), CHENNAI

This appeal filed by the assessee is directed against the order dated 31.07.2025 passed by the Addl/JCIT(A)-5, Mumbai for the assessment year 2021-22.

The assessee raised 1 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is Shri Sarth Kumar Sekkanor Murugesan Shri Sarth Kumar Sekkanor Murugesan justified in confirming the disallowance made by the Assess justified in confirming the disallowance made by the Assess justified in confirming the disallowance made by the Assessing Officer towards foreign tax credit claimed at towards foreign tax credit claimed at Rs.1,03,900/- under section 90 under section 90 of the Income Tax Act, 1961 Income Tax Act, 1961 ["Act" in short] in the facts and ["Act" in short] in the facts and circumstances of the case. circumstances of the case.

The ld. AR for the assessee for the assessee submits that the issue of foreign tax the issue of foreign tax credit is covered by the judgment of the Hon’ble Jurisdictional High credit is covered by the judgment of the Hon’ble Jurisdictional High credit is covered by the judgment of the Hon’ble Jurisdictional High Court in the case of Duraiswamy Kumaraswamy (WP No. 5834 of 2022 Duraiswamy Kumaraswamy (WP No. 5834 of 2022 Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 & ors. Dated 06.10.2023 [460 ITR 615 (Madras). Hence, Hence, the ld. AR prayed for allowing the ground raised by the assessee. prayed for allowing the ground raised by the assessee. prayed for allowing the ground raised by the assessee.

The ld. DR Mr.ARV Sreenivasan Mr.ARV Sreenivasan, CIT relied on the order of the ld. CIT relied on the order of the ld. CIT(A).

Heard both the parties and perused the material available on Heard both the parties and perused the material available on Heard both the parties and perused the material available on record. In this case, record. In this case, the assessee claimed FTC of the assessee claimed FTC of Rs.1,03,900/- under section 90 of the Act. The return filed by the assessee was of the Act. The return filed by the assessee was of the Act. The return filed by the assessee was processed under section 143(1) section 143(1) of the Act by denying the claim of FTC by denying the claim of FTC Shri Sarth Kumar Sekkanor Murugesan Shri Sarth Kumar Sekkanor Murugesan on account of the assessee filed Form 67 belatedly. the assessee filed Form 67 belatedly. the assessee filed Form 67 belatedly. Subsequent rectification order u/s.154 dated 08.04.2023 was passed denying the rectification order u/s.154 dated 08.04.2023 was passed denying the rectification order u/s.154 dated 08.04.2023 was passed denying the Foreign tax credit. We e find that the issue is covered by the find that the issue is covered by the decision of the Hon'ble High Court o the Hon'ble High Court of Madras in the case of Duraiswamy f Madras in the case of Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 ITR 615 (Madras), wherein, the Hon'ble High Court has held that filing ITR 615 (Madras), wherein, the Hon'ble High Court has held that filing ITR 615 (Madras), wherein, the Hon'ble High Court has held that filing of aforesaid form in terms of Rule 128 is only directory in nature. The of aforesaid form in terms of Rule 128 is only directory in nature. The of aforesaid form in terms of Rule 128 is only directory in nature. The rule is only for the implementation of the provisions of the Act and it the implementation of the provisions of the Act and it the implementation of the provisions of the Act and it will always be directory in nature and decided the issue in favour of will always be directory in nature and decided the issue in favour of will always be directory in nature and decided the issue in favour of the assessee. Under the above facts and circumstances, we direct the the assessee. Under the above facts and circumstances, we direct the the assessee. Under the above facts and circumstances, we direct the Assessing Officer to Assessing Officer to give foreign tax credit in accordance wi foreign tax credit in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical Thus, the grounds raised by the assessee are allowed for statistical Thus, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for In the result, the appeal filed by the assessee is allowed for In the result, the appeal filed by the assessee is allowed for statistical purposes.