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Facts
The assessee claimed Foreign Tax Credit (FTC) of Rs.6,07,089/- under Section 91 for tax deducted by an overseas employer, which was denied by the Centralized Processing Centre (CPC) due to non-submission of Form 67. The Ld. CIT(A) dismissed the assessee's appeal in limine on grounds of delay, which the assessee attributed primarily to the COVID-19 pandemic.
Held
The Tribunal condoned the delay in filing the appeal before the Ld. CIT(A), finding it had reasonable cause due to the COVID-19 pandemic and the assessee's overseas employment. It restored the matter to the Ld. CIT(A) for fresh adjudication on the merits of the FTC claim, directing to call for a remand report from the Jurisdictional Assessing Officer and pass a speaking order.
Key Issues
1. Whether the delay in filing the appeal before the Ld. CIT(A) should be condoned. 2. Whether the assessee is eligible for Foreign Tax Credit under Section 91 despite the non-submission of Form 67.
Sections Cited
143(1)(a), 250, 91, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
Assessee by : Shri Sumit Anand (Through virtual) Shri Dayanand Jawalikar Revenue by : Date of hearing : 10.06.2025 Date of pronouncement : 20.06.2025 आदेश / ORDER This appeal filed by the assessee pertaining to the assessment year 2019-20 is directed against the order dated 02.05.2024 of Addl/JCIT(A)-2, Jaipur passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Intimation Order dated 23.02.2021 passed u/s.143(1)(a) of the Act.
The sole grievance of the assessee through various grounds of appeal
is that ld.CIT(A) erred in confirming the action of Centralized Processing Centre (CPC) of not providing relief u/s.91 of the Act at Rs.6,07,089/- towards the Foreign Tax Credit for non- submission of Form No.67.
3. At the outset, Ld. Counsel for the assessee submitted that ld.CIT(A) has dismissed the assessee’s appeal in limine by not condoning the delay in filing the appeal before ld.CIT(A) even though major period of the delay was on account of covid-19 2 Kunal Chandra Prasad Sinha restrictions because the date of processing the return u/s.143(1)(a) is 23.02.2021 Ld. Counsel for the assessee prayed that delay in filing of appeal before ld.CIT(A) may please be condoned and the matter may please be restored to the file of ld.CIT(A) for examination of claim of Foreign Tax Credit at Rs.6,07,089/- towards the tax deducted by the Employer Mara Phones Rwanda Limited as per Article 16 of the Double Tax Avoidance Agreement with Rwanda.
4. Ld. Departmental Representative supported the orders of the lower authorities but did not oppose if the issue is restored to the file of ld.CIT(A).
I have heard the rival contentions and the perused placed before me. I observe that assessee in the return of income for A.Y. 2019-20 filed on 31.08.2018 declared income from salary at Rs.36,61,792/- and income from other sources at Rs.35,489/- and claimed deduction under Chapter VIA declared income of Rs.34,94,08/-. Against the tax liability the assessee claimed tax relief u/s.91 of the Act at Rs.6,07,089/- which was the tax deducted by employer outside India namely Mara Phones Rwanda Limited on the gross salary given to assessee at Rs.22,69,375/-. However, said claim was denied by CPC as assessee did not furnish Form No.67. Appeal before ld.CIT(A) did not brought the assessee any relief as assessee’s appeal was delayed. I notice that assessee had a reasonable cause for the said delay as the major portion of the delay was on account of covid-19 pandemic outbreak prevailed across the country and further assessee did not receive any communication as he was employed outside India and was also looking after the overseas commitments. It is a clear case where the assessee would not have been benefitted by delaying the filing 3 Kunal Chandra Prasad Sinha of appeal before ld.CIT(A). I therefore condone the delay in filing of appeal before ld.CIT(A). Further, as ld.CIT(A) has not passed a speaking order and dismissed the appeal in limine, therefore, considering the prayer of the assessee, I deem it to be a fit case to restore all the issues raised in the instant appeal to the file of ld.CIT(A) for necessary adjudication and examining the veracity of the claim of Foreign Tax Credit at Rs.6,07,089/- for which necessary details shall be filed by the assessee and ld.CIT(A) shall call for a remand report from the Jurisdictional Assessing Officer and if satisfied then decide the issue in accordance with law by passing a speaking order as contemplated u/s.250(6) of the Act. Needless to say that assessee shall be given due opportunity of being heard. Grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.