PRASHANT KURANI,MUMBAI vs. THE ASSISTANT DIRECTOR OF INCOME TAX, BENGALURU

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-57, Mumbai (in short ‘ the CIT(A)’), dated 30.6.2023, for the Assessment Year 2020-21.

The Learned Authorised Representative of the assessee (in short ‘ the Ld. AR’) submitted that the assessee has furnished Form No.67 to claim Foreign Tax Credit before filing revised return of income disclosing salary income received in China. The Ld. AR has placed reliance on the decision of the Tribunal in the case of Yogesh Dnyandeo Kinage Vs Assistant Director of Income Tax, CPC in for the assessment year 2018- 19, decided on 10.8.2023, wherein on similar facts, the assessee had furnished Form No.67 after the elapse of the due date for filing of return of income u/s. 143(1) of the Act. The Tribunal directed the Assessing Officer to (A.Y 2020-21.) Prashant Kurani Vs. The Assistant Director of Income Tax grant foreign tax credit to the assessee on the basis of Form No.67 furnished by the assessee after due verification.

Per contra, Shri H. M. Bhatt, representative of the Department (in short ‘the Ld. DR’) vehemently defended the impugned order. The Ld. DR submitted that as per Rule 128, the assessee was required to furnish Form No.67 on or before the due date for filing of return of income u/s. 139(1) of the Act. The assessee has failed to comply the same, hence, the CIT(A) has rightly dismissed the appeal of assessee. The Ld. DR prayed for upholding the impugned order and dismissing appeal of the assessee.

We have heard the submissions made by rival sides and have examined the orders of authorities below. The short issue in appeal before us is that form No.67 furnished by the assessee was not considered for grant of Foreign Tax Credit on the ground that it was filed belated. Rule 128(9) of the Income Tax Rules, 1962 mandates to furnish form No.67 before the due date specified for furnishing return of income under section 139(1) of the Act. The assessee furnished Form No.67 after the said due date but before filing revised return of income. The defect in filing Form no.67 after the due date as specified under section 139(1) is merely a procedural defect and hence rectifiable. Our this views is supported by the decision in the case of Sonakshi Sinha Vs. Commissioner of Income Tax (Appeals) [142 taxmann.com 414, Mumbai. Trib]. The said decision has been followed by the coordinate bench in the case of Yogesh Dnyandeo Kinage (supra).

Taking into consideration the facts of the case and the decisions referred above, we deem it appropriate to restore this issue to the file of AO to consider Form No.67 and allow the benefit of Foreign Tax Credit to the assessee, in accordance with law.