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Facts
The assessee's income tax return for AY 2019-20 was processed under section 143(1), leading to a short allowance of Rs.45,148/- for donations under Chapter VIA and denial of foreign tax credit of Rs.99,187/- under section 91. The Assessing Officer, in a rectification order under section 154, rejected the foreign tax credit claim due to the belated filing of Form 67. The Ld. CIT(A) subsequently dismissed the assessee's appeal.
Held
The Tribunal allowed the deduction of Rs.45,148/- for donations under Chapter VIA, being satisfied with the donation receipts on record. It also directed the Assessing Officer to grant credit of Rs.99,187/- for foreign taxes paid, holding that the belated filing of Form 67 was merely a procedural lapse, especially since the income was already taxed.
Key Issues
Whether the assessee is eligible for deduction of donations under Chapter VIA. Whether foreign tax credit under section 91 can be denied solely due to belated filing of Form 67.
Sections Cited
Section 250, Income-tax Act, 1961, Section 143(1), Chapter VIA, Section 91, Section 154
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI T.R. SENTHIL KUMAR
Appellant by : Ms. Kinjal Shah, CA Respondent by: Ms. Ketaki Desai, Sr DR Date of Hearing 10.02.2026 Date of Pronouncement 11.02.2026 O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT:
This appeal has been filed by the assessee against the order dated 18.09.2025 passed by the Ld. Addl/JCIT (A)-4, Mumbai (“Ld. CIT(A)” for short), under Section 250 of the Income-tax Act, 1961 (“the Act” for short) for Assessment Year 2019-20. 2. The assessee has taken the following grounds of appeal:-
“1. The CITA has erred in confirming short deduction being donations of Rs.45,148/- being claimed as a Chapter VIA stating that the Appellant has not filed documentary evidences regarding donations claimed as a deduction. It is submitted that the Appellant has filed the receipt for donation along with the Return of Income and since the same is already on record of the AO, the CITA ought to have allowed deduction for donations of Rs.45,148/- Rohini Gautambhai Shah Vs. ITO Asst.Year –2019-20 - 2–
The CITA has erred in not granting credit for taxes paid of Rs. 99,187/- on foreign income of Rs. 2,26,483/- u/s.91 under the contention that Form 67 was not filed before due date of filing Return of Income. It is submitted that filing Form No.67 is merely a procedural formality and since it is filed on 7/5/2021 i.e before the AO passed rectification order u/s. 154 on 19/8/2024, thus, the same is filed in the course of the assessment proceedings and therefore the CITA ought to have granted credit for Rs. 99,187/-as correctly claimed in the course of the assessment proceedings.”
Briefly stated, the facts of the case are that the return of income filed by the assessee was processed under section 143(1) of the Act on 28.03.2021, wherein a short allowance of deduction of Rs.45,148/- under Chapter VIA of the Act was made and credit for foreign taxes paid under section 91 of the Act was not granted. Aggrieved by the same, the assessee filed a rectification application before the Assessing Officer. The Assessing Officer passed an order under section 154 of the Act on 08.03.2024, rejecting the assessee’s claim for relief under section 91 of the Act on the ground that Form No. 67 was not filed before the due date of filing the return of income and determining the total income at Rs.9,80,957/-.
3.1 Aggrieved by the rectification order passed under section 154 of the Act, the assessee preferred an appeal before the Ld. CIT(A), who dismissed the appeal. The assessee is now in further appeal before the Tribunal.
Ground No.1 4. The assessee has claimed Rs.45,148/- being the donation given to an eligible trust and claimed deduction under Chapter VIA of the Act. On perusal of the donation receipts placed on record, we are satisfied that the assessee is eligible for the said deduction. Accordingly, the deduction of Rs.45,148/- is directed to be allowed. Rohini Gautambhai Shah Vs. ITO Asst.Year –2019-20 - 3– Ground No. 2 5. With regard to granting of credit for taxes paid of Rs.99,187/-, the Assessing Officer denied the same solely on the ground that Form No. 67 was filed belatedly. Having gone through the entire record, we hold that this is merely a procedural lapse and the Assessing Officer is hereby directed to grant credit for taxes paid amounting to Rs.99,187/- which relates to income that has been duly taxed in the hands of the assessee.
In the result, the appeal of the assessee is allowed.