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Facts
The assessee, a salaried employee, declared income and claimed Foreign Tax Credit (FTC). The CPC denied the FTC, and the CIT(A) upheld the denial, stating insufficient evidence and lack of response from the assessee.
Held
The Tribunal held that the CIT(A) erred in denying the FTC without properly serving notice for hearings. The Tribunal granted one more opportunity to the assessee to present their case.
Key Issues
Whether the CIT(A) erred in denying the FTC claim without proper notice and opportunity of hearing to the assessee, violating principles of natural justice.
Sections Cited
90, 90A, 282
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2021-2022) Subramanian Swaminathan, Vs. The Assistant Commissioner of Flat C, New No.4, Old No.24, Income Tax, Chandrashekar Apartments, Non Corporate Circle 4(1) 4th Street, Kodambakkam, Chennai 600 006. Chennai 600 024. [PAN: BKEPS 4414H] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri Logesh, Advocate ��यथ� क� ओर से /Respondent by : Ms. M. Aswathy, JCIT सुनवाई क� तार�ख/Date of Hearing : 24.02.2025 घोषणा क� तार�ख /Date of Pronouncement : 25.03.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member)
This appeal filed by the assessee is directed against the order of the Ld. Addl/JCIT (A)-1 Nashik [CIT(A)] Office of the Commissioner of Income Tax (Appeals) dated 23.10.2024 for Assessment Year 2021-22.
Brief facts of the case are that the assessee is a salaried employee for the AY 2021-22 and had filed its return of income on 28.12.2021 for the AY 2021-22 declaring income of Rs.55,73,110/- and claimed the tax relief i.e; Foreign Tax Credit (‘FTC’ in short) u/s 90/90A of the Act of Rs.1,38,138/-. However, the CPC while processing the return denied relief of FTC and raised the additional demand of Rs.1,69,380/-. The ld.CIT(A) upheld the order of the AO and noted as under: ‘’8.3 The appellant has challenged the disallowance of tax relief under section 90/90A of Rs.1,38,138/-without submitting sufficient evidences or counter arguments in support of its claims. Mere claiming that the CPC erred in making the additions does not give an edge to the appellant. Further, during appellate proceedings, no response received from the appellant to substantiate its claim in support of grounds of appeal though enough opportunities of being heard were given to it, as tabulated in Para 4 above. Hence, keeping in view all the stated facts and discussions and in the absence of any corroborative evidence or material/submission on records, I find no reason in altering the additions made by the CPC. In view of this, the grounds raised by the appellant are dismissed’.
Now assessee is in further appeal before us.
Before us, the ld.counsel submitted that the ld.CIT(A) erred in denying the claim of Foreign Tax Credit (‘FTC’) u/s 90/90A of the Act of Rs.1,38,138/-, without properly serving the notice for hearings.
The ld. DR relied upon the order of the ld.CIT(A).
We have heard the both parties. We are of the considered view that the ld.CIT(A) should have given proper notice of hearing as per section 282 of the Act also. Hence, keeping in mind the principles of natural justice, we grant one more opportunity to the assessee to prosecute his case before the ld.CIT(A). The ld. Counsel, during the course of hearing has assured us that he will get the appeal prosecuted before the ld.CIT(A), if the appeal is set aside and remanded back to the file of the ld. CIT(A) for fresh adjudication. Therefore, in the light of aforesaid factual position we deem it fit to set aside this appeal to the file of ld.CIT(A) to hear the appeal afresh on merit. The Ld.CIT(A) who shall proceed for fresh adjudication of appeal after providing proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the appeal proceedings as per law.
In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 25th day of March, 2025 at Chennai.