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Facts
The assessee filed its original return of income on time but failed to file Form 67. Subsequently, a revised return was filed along with Form 67. The CPC-Bangalore processed the revised return, disallowing the foreign tax credit claim u/s 91, which was upheld by the Ld.CIT(A) in a rectification order u/s 154.
Held
Following a precedent set in the case of *Neeta Garg Vs. ITO*, the Tribunal directed the Assessing Officer to accept Form 67 filed with the revised return of income. The AO is further directed to decide the claim for foreign tax credit on merits after providing adequate opportunity to the assessee, rather than denying it on technical grounds.
Key Issues
Whether foreign tax credit can be denied solely due to Form 67 not being filed with the original return of income, when it was filed with a revised return.
Sections Cited
154, 143(1), 139, 139(5), 91
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “F” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & DR. B.R.R. KUMAR
सुनवाईक�तारीख/ Date of hearing: 03.01.2024 21.03.2024 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R PER C.N. PRASAD, J.M.
This appeal is filed by the assessee against the order of the Ld.CIT(Appeals)-(NFAC), New Delhi dated 15.03.2023 for the AY 2019-20 in sustaining the rectification order u/s 154 of the Act passed by the CPC – Bangalore and in not allowing foreign tax credit while passing the order u/s 143(1) of the Act.
I.T.A.No.1465/Del/2023
Heard rival submissions. The assessee filed its original return of income on 19.10.2019 within time specified u/s 139 of the Act.
However, mistakenly Form No. 67 was not filed along with original return. The assessee rectified this defect by filing revised return u/s 139(5) of the Act on 12.10.2020 along with Form No.67. The CPC-Bangalore processed the revised return vide intimation u/s 143(1) of the Act dated 28.03.2021 without allowing claim for foreign tax credit u/s 91 of the Act even though the assessee filed Form 67 along with the revised return filed on 12.09.2020.
We observe that identical issue came up before the Tribunal in the case of Neeta Garg Vs. ITO in dated 11.10.2023, wherein the Tribunal directed the AO to decide the claim for tax credit on merits after accepting Form 67 and other related documents filed by the assessee instead of denying the claim for foreign tax credit on technical aspect of not filing Form 67 along with the original return of income.
Thus, respectfully following the said order, we restore this issue to the file of the AO with a direction to accept Form 67 filed by the assessee along with the revised return of income and decide the claim for foreign tax credit on merits after accepting Form 67 and providing adequate opportunity to the assessee. 2
I.T.A.No.1465/Del/2023
In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 21/03/2024