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Facts
The assessee, an individual, derived salary from two companies and income from a partnership firm. He filed his return of income declaring total income and claimed foreign tax credit. The CPC disallowed the foreign tax credit due to the non-filing of Form No. 67.
Held
The Tribunal restored the issue to the file of the Ld. Addl. / JCIT(A) to grant an opportunity to the assessee to substantiate his case by filing the requisite details and decide the issue.
Key Issues
Whether foreign tax credit can be disallowed solely due to delay in filing Form No. 67, when the assessee was not given an opportunity to present their case.
Sections Cited
143(1), 143(3), 147, 148
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Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & MS. ASTHA CHANDRA
This appeal filed by the assessee is directed against the order dated 26.03.2025 of the Ld. Addl. / JCIT(A)-3, Kolkata relating to assessment year 2018- 19.
Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the Ld. Addl. / JCIT(A) confirming the disallowance of foreign tax credit of Rs.32,73,316/- by the Assessing Officer / CPC in the intimation u/s 143(1) of the I.T. Act, 1961 on account of delay in filing of Form No.67.
Facts of the case, in brief, are that the assessee is an individual and derives salary from two companies viz. Sasken Technology Ltd. and Intel Technology India Pvt. Ltd. and also share income from the partnership firm. He filed his return of income for the impugned assessment year on 31.08.2018 declaring total income of Rs.3,93,39,860/-. The CPC while processing the return did not grant the foreign tax credit of Rs.32,73,316/- since the assessee did not upload Form No.67.
The assessee file an appeal which was dismissed by the Ld. Addl. / JCIT(A) due to non-prosecution.
Aggrieved with such order of the Ld. Addl. / JCIT(A), the assessee is in appeal before the Tribunal.
The Ld. Counsel for the assessee submitted that although in the intimation passed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), the foreign tax credit was disallowed, however, in the order giving effect to appeal against order passed u/s 143(3) of the Act, the Assessing Officer has allowed the foreign tax credit. He submitted that since the demand is showing in the intimation u/s 143(1) of the Act, therefore, the Ld. Addl. / JCIT(A) should have allowed the foreign tax credit. He submitted that the delay in filing of Form No.67 cannot be a ground to deny the benefit of foreign tax credit since the same was uploaded prior to the passing of the intimation. Relying on various decisions, he submitted that the foreign tax credit should be granted.
The Ld. DR on the other hand submitted that the Ld. Addl. / JCIT(A) has passed the ex-parte order due to non submission of the assessee on the appointed date. Further, for claiming the foreign tax credit the assessee is duty bound to upload Form No.67 along with the return of income before the due date. Since the assessee in the instant case has failed to do so, therefore, the Ld. Addl. / JCIT(A) was justified in dismissing the appeal filed by the assessee.
We have heard the rival arguments made by both the sides, perused the orders of the CPC / Assessing Officer as well as the Ld. Addl. / JCIT(A) and the paper book filed on behalf of the assessee. We find due to non-filing of Form No.67 along with the return of income the CPC, in the intimation passed u/s 143(1) disallowed the foreign tax credit of Rs.32,73,316/-. We find due to non- submission of any details on the appointed date, the Ld. Addl. / JCIT(A) rejected the grounds raised by the assessee in the ex-parte order passed by him. It is the submission of the Ld. Counsel for the assessee that while order giving effect to appeal against the order passed u/s 143(3), the Assessing Officer has already granted the foreign tax credit. However, the demand continues on account of denial of foreign tax credit by the CPC. Since the assessee in the instant case has not filed any submission before the Ld. Addl. / JCIT(A) for which he was constrained to pass the ex-parte order, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. Addl. / JCIT(A) with a direction to grant an opportunity to the assessee to substantiate his case by filing the requisite details and decide the issue as per fact and law. The assessee is also hereby directed to appear before the Ld. Addl. / JCIT(A) on the appointed date and make his submissions, if any, without seeking any adjournment under any pretext failing which the Ld. Addl. / JCIT(A) shall be at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 10th September, 2025.
Sd/- Sd/- (ASTHA CHANDRA) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 10th September, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपीलार्थी / The Appellant; 1. 2. प्रत्यर्थी / The Respondent 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune
S.No. Details Date Initials Designation 1 Draft dictated on 09.09.2025 Sr. PS/PS 2 Draft placed before author 09.09.2025 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Head 9 Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order