SENTHIL NATHAN RAMAKRISHNA BABU,CHENNAI vs. ITO, CIRCLE 17(7), CHENNAI

Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 06-06-2024 in the matter of an intimation issued by CPC, Bengaluru u/s 143(1) on 20-03-2020 denying Foreign Tax Credit of Rs.9.17 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.

It emerges that the assessee filed Form 67 with revised return of income as filed on 30-03-2019 to lay claim on the foreign tax credit. However, Ld. CIT(A) upheld the intimation on the ground that Form 67 as required under Rule 128(9) was not furnished along with return of income u/s 139(1). This condition was mandatory and not directory as pleaded by the assessee. Aggrieved, the assessee is in further appeal before us.

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. 4. The appeal stand allowed for statistical purposes. Order pronounced on 9th October, 2024 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) �ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे1ई Chennai; िदनांक Dated :09-10-2024 DS आदेशकीIितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु:/CIT Chennai. 4. िवभागीय�ितिनिध/DR 5. गाड?फाईल/GF