SATISHKUMAR EKAMBARAM,INDIA vs. THE INCOME-TAX OFFICER, NAMAKKAL

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ITA 2070/CHNY/2024Status: DisposedITAT Chennai04 November 2024AY 2019-20Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member), SHRI MANU KUMAR GIRI (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, relying on previous decisions, held that the filing of Form 67 in terms of Rule 128 is directory in nature and not mandatory. The rule is for implementing the provisions of the Act. Therefore, the denial of FTC based solely on the belated filing of Form 67 is not justified.

What were the facts?

The assessee filed appeals for AY 2018-19 and 2019-20 regarding the denial of foreign tax credit (FTC). For AY 2018-19, FTC of Rs.9.59 Lacs was denied because Form 67 was filed belatedly, after the original return of income. The assessee later revised the return and filed Form 67, but the CPC denied the credit.

What were the issues?

Whether the foreign tax credit can be denied solely on the ground of belatedly filing Form 67, when the rule is considered directory.

Which sections of the Income-tax Act were involved?

Section 90,Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

Heard together (2 matters)

ITA No.2069/Chny/2024
ITA No.2070/Chny/2024

Read from the judgment's own cause title. This page is filed under one of them.

(िनधा9रणवष9 / Assessment Year: 2019-20) Shri Satishkumar Ekambaram ITO बनाम/ 461, Chakranagar Paramathi-Velur, Ward-2, Vs. Namakkal-638 182. Namakkal. �थायीलेखासं./जीआइआरसं./PAN/GIR No. BJZPS-4367-P (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : None � थ�कीओरसे/Respondent by : Shri AR.V. Srinivasan (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 04-11-2024 घोषणा की तारीख /Date of Pronouncement : 04-11-2024 आदेश / O R D E R Per BENCH:

1.

Aforesaid appeals by assessee for Assessment Years (AY) 2018- 19 & 2019-20 have identical issue i.e., allowance of foreign tax credit (FTC). At the time of hearing, none appeared for assessee and accordingly, the appeals were heard with the able assistance of departmental representative.

2.

The appeal for AY 2018-19 arises out of an order passed by Learned Addl. /Joint Commissioner of Income Tax (Appeals)-1, Jaipur, [CIT(A)] on 06-06-2024 in the matter of an intimation issued by CPC, Bengaluru u/s 143(1) on 10-06-2020 denying Foreign Tax Credit of Rs.9.59 Lacs as claimed by the assessee u/s 90. The same was denied for want of filing of requisite Form 67 along with return of income.

3.

It emerges that the assessee filed original return of income on 30- 08-2019 but it did not claim FTC of Rs.9.59 Lacs. The assessee revised return of income on 31-03-2019 and filed Form No. 67 on 30-03-2019. The ITR was processed by CPC and credit was not allowed since Form No.67 was filed belatedly. The Ld. CIT(A) confirmed the action of CPC since this claim was not made in the original return of income. As per Rule 128(9), this form was required to be furnished along with return of income u/s 139(1). Aggrieved, the assessee is in further appeal before us.

4.

We find that the issue of foreign tax credit is covered in assessee’s favor by the decision of this Tribunal in the case of ITO vs. Smt. Chengam Durga (ITA No.1491/Chny/2023 dated 08-04-2024). The bench, considering the decision of Hon’ble High Court of Madras in the case of Duraiswamy Kumaraswamy (WP No.5834 of 2022 & ors. order dated 06.10.2023), held that filing of this form in terms of Rule 128 was only directory in nature. The rule is only for the implementation of the provisions of the act and it would always be directory in nature. Respectfully following the same, we direct Ld. CIT(A) to grant impugned Foreign Tax Credit to the assessee after verifying Form No.67.

5.

Since facts as well as issue in AY 2019-20 are pari-materia the same, our adjudication as above shall apply mutatis-mutandis to this year also.

6.

Both the appeals stand allowed for statistical purposes. Order pronounced on 04th November, 2024.

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