KARTHIKEYAN CHELLADURAI MADASAMY,KANCHIPURAM vs. ITO, NCC-22(1), TAMBARAM

The assessee raised 7 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the disallowance made by the Assessing Officer towards foreign tax credit claimed at Rs.6,91,186/- under section 90 of the Income Tax Act, 1961 ["Act" in short] in the facts and circumstances of the case.

We note that the assessee filed his return of income for AY 2019- 20 after claiming foreign tax credit of Rs.6,91,186/-. The CPC passed intimation under section 143(1) of the Act dated 19.03.2021 by disallowing the claim of foreign tax credit. On appeal, the ld. CIT(A) dismissed the appeal in limine on account of delay of 1328 days in filing appeal. He has not adjudicated the issue on merits.

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

The ld. DR Ms. R. Anita, Addl. CIT relied on the order of the ld. CIT(A). 6. Heard both the parties and perused the material available on record. In this case, the assessee claimed FTC of Rs.6,91,186/- under section 90 of the Act. The return filed by the assessee was processed under section 143(1) of the Act by denying the claim of FTC on account of the assessee filed Form 67 belatedly. WE find that the issue is covered by the decision of the Hon'ble High Court of Madras in the case of Duraiswamy 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 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 will always be directory in nature and decided the issue in favour of the assessee. Under the above facts and circumstances, we direct the Assessing Officer to verify, whether the assessee is eligible for foreign tax credit or not and pass order in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical purposes. Karthikeyan Chelladurai Madasamy

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 26th day of November, 2025 at Chennai. (एस. आर. रघुनाथा) (S.R.RAGHUNATHA) लेखा सद#य/ACCOUNTANT MEMBER (मनु कुमार िग र) (MANU KUMAR GIRI) $याियक सद#य/JUDICIAL MEMBER चे$नई/Chennai, &दनांक/Dated: 26th November, 2025. EDN, Sr. PS

िवभागीयितिनिध/DR 5. गाड#फाईल/GF