VIJAY INDUBHAI SHETH,SATELLITE vs. INCOME TAX OFFICER WARD 3(3)(5), VEJALPUR

PDF · subscribers
ITA 780/AHD/2025Status: DisposedITAT Ahmedabad06 June 2025AY 2021-22Bench: Smt. Annapurna Gupta (Accountant Member), Shri T. R. Senthil Kumar (Judicial Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal condoned the delay of 772 days in filing the appeal before the CIT(A), stating that FTC cannot be denied for belated filing. The matter was set aside to the Assessing Officer to reconsider the FTC claim.

What were the facts?

The assessee filed their return for AY 2021-22 belatedly, claiming Foreign Tax Credit (FTC) which was denied due to late filing of Form 67. The Rectification Application was rejected, and the subsequent appeal to CIT(A) was dismissed for being delayed.

What were the issues?

Whether the delay in filing the appeal before the CIT(A) should be condoned, and whether FTC can be denied solely on the ground of belated filing of Form 67.

Which sections of the Income-tax Act were involved?

Section 154,Section 143(1),Section 90

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH

Before: Smt. Annapurna Gupta & Shri T. R. Senthil Kumar

ITA No: 780/Ahd/2025 Assessment Year: 2021-22 Vijay Indubhai Sheth The ITO, 548, Satyagrah Chhavni Ward-3(3)(5), Lane 23, Satellite Road, Vs Ahmedabad Satellite, Ahmedabad Gujarat-380015 PAN: ACZPS3778C (Appellant) (Respondent) Assessee Represented: Shri Dipen Shukhadia, A.R. Revenue Represented: Shri Sudhakar Verma, Sr.D.R. Date of hearing : 03-06-2025 Date of pronouncement : 06-06-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:-

This appeal is filed by the Assessee as against the appellate order dated 22.03.2025 passed by the Additional Commissioner of Income Tax (Appeals)-2, Chennai refusing to condone the delay of 782 days in filing the appeal as against the Rectification order passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2021-22.

A.Y. 2021-22 Page No 2 Vijay Indubhai Sheth. vs. ITO

2.

Brief facts of the case is that the assessee is an individual who has filed the Return of Income for the Asst. Year 2021-22 belatedly on 31-03-2022 claiming relief of tax paid outside India of Rs.7,01,004/- along with Form No. 67. The return was processed u/s. 143(1) of the Act vide intimation dated 30-10-2022. However the Foreign Tax Credit claimed by the assessee was denied because of late filing of Form No. 67 and demand tax of Rs.10,82,240/-.

3. The assessee moved an application for Rectification Application u/s. 154 of the Act, the same was rejected on 10-01-2023. Since the assessee was travelling outside India, he could not verify by logging into the website of the Department, which has resulted in filing the appeal with the delay of 772 days. The assessee further explained that till passing of Rectification order 408 days was conceived. It is thereafter 364 days delay in filing the appeal and therefore requested Ld. CIT(A) to condone the delay. However the above request was rejected by Ld. CIT(A) observing that the reasons cited by the assessee are in routine manner and sufficient cause is not made out by the assessee, thereby dismissed the appeal in limine.

4.

Aggrieved against the appellate order, assessee is in appeal before us raising the following Grounds of Appeal:

The following grounds are without prejudice to each other. In view of the facts and circumstances of the case- 1. The Learned CIT (A) has erred not condon the delay filing an appeal.

A.Y. 2021-22 Page No 3 Vijay Indubhai Sheth. vs. ITO

2. The Learned CIT (A) has not appreciated the facts and circumstances mentioned in delay condonation application before him.

3.

The Learned NFAC has erred in not allowing relief u/s 90 i.e. credit of tax Paid in foreign country. 5. Ld. Counsel for the assessee filed a Paper Book which contains Form No. 67 with Acknowledgement and other details. Thus Ld. Counsel relied upon Delhi Tribunal decision in the case of Eastman Industries Ltd. Vs. ACIT in and Others order dated 18-08-2023 and Kolkata Tribunal decision in the case of Neetu Agarwal Vs. ITO, Kolkata in dated 18-11-2024 on the proposition that the FTC cannot be denied to the assessee on late filing of Form No. 67.

6.

Per contra Ld. Sr. D.R. appearing for the Revenue supported the order passed by the Lower Authorities and requested to uphold the same.

7.

We have given our thoughtful consideration and perused the materials available on record. It is the case of the assessee that Rectification Petition filed against the u/s. 143(1) order and after receipt of the Rectification order, the assessee filed the appeal belatedly before Ld. CIT(A). We are satisfied with the reasons stated before Ld. CIT(A). Thus we hereby condone the delay of 772 days in filing the appeal before Ld. CIT(A). It is settled principle of law that FTC cannot be denied to an assessee having filed the same belatedly. Since the Lower Authorities not considered the belated filing of Form No. 67 by the assessee, we deem it fit to setaside the matter back to the file of Jurisdictional Assessing Officer to A.Y. 2021-22 Page No 4 Vijay Indubhai Sheth. vs. ITO consider the Form No. 67 claiming Foreign Tax Credit by giving proper opportunity of hearing to the assessee and redo the assessment in accordance with law.

8.

In the result, the appeal filed by the Assessee allowed for statistical purpose.

Order pronounced in the open court on 06-06-2025

More judgments on Section 154

All 8,676 judgments and leading authorities on Section 154 →

Recent GST High Court judgments

Search GST case law →