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Facts
The appellant sought foreign tax credit relief under section 90, amounting to Rs. 19,29,739, but it was denied by the AO because Form-67 was filed after the due date. The appellant filed Form-67 on 26.02.2021, whereas the due date was 31.07.2020, citing the Covid-19 scenario and revised TOLA guidelines allowing filing up to 31.03.2021.
Held
The Tribunal held that the view taken by the Ld. CIT(A) regarding the extended time lines being January 10, 2021, was not correct and deserved reconsideration. The Tribunal set aside the order of the lower authorities.
Key Issues
Whether the time lines prescribed in TOLA guidelines prevail over time extensions promulgated by CBDT, especially in the context of the Covid-19 scenario.
Sections Cited
90, 250
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Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI ABY T VARKEY & SHRI AMITABH SHUKLA
Suresh Bethavandu, Deputy Commissioner of Income Tax, New No.34, Old No.51, Visreya Non-Corp circle-17(1), Padmanabhan Nagar, 4th Street, Adyar, Chennai Besant Nagar, Chennai-600 020. [PAN: ALNPS1458E] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Appellant by : Shri V.Balaji, CA(virtual) प्रत्यर्थी की ओर से /Respondent by : Mr.Chinthapalli Meher Chand, JCIT सुिवाई की तारीख/Date of Hearing : 22.10.2024 घोर्णा की तारीख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M :
This appeal is filed against the order bearing DIN & Order No.ITBA/APL/S/250/2024-25/1067145691(1) dated 30.07.2024 for the assessment years 2020-21. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 30.07.2024 passed by ADDL/JCIT(A)-1, Lucknow.
2.0 The only issue in the case raised by the appellant through the grounds of appeal is regarding denial of its foreign tax credit relief u/s 90 amounting to Rs. 19,29,739/- by the AO on account of the same having been filed after the due date. Through its paper book filed during the course of present proceedings the Ld. Counsel pleaded that it was required to file a Form-67 mandatory for claim of FTC relief u/s 90 on or before 31.07.2020. However, owing to Covid-19 scenario it was able to file the same only on 26.02.2021. It is the case of the Ld. Counsel of the assesse that the revised TOLA guidelines entitled the assesse to file it upto 31.03.2021. The Ld. DR contended that the view taken by the Ld. CIT(A) that as per the extended time lines the same was required to be filed by January 10, 2021, is correct. The Ld. DR thus heavy relied upon the order of CIT(A).
3.0 We have heard rival submissions in the light of material on records. The only controversy in the issue is as to whether the time lines prescribed in the TOLA guidelines would prevail over the time lines extension promulgated by the CBDT. In our considered opinion the view taken by the Ld. CIT(A) is not correct and deserves to be revisited. Accordingly, we deem it fit to set aside the order of the lowers authorities and direct the Ld. CIT(A) to readjudicate the matter afresh after 3 -: considering time extensions prescribed in TOLA guidelines and judicial pronouncements on the matter, after giving opportunities of being heard to the assesse. The assesse shall comply with all the notices issued by the Ld.First Appellate Authority. Accordingly the grounds of appeal raised by the assesse are allowed for statistical purposes.