INCOMETAX OFFICER, CHENNAI vs. SANDEEP KUMAR SINGH, CHENNAI

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ITA 973/CHNY/2024Status: DisposedITAT Chennai28 June 2024AY 2020-21Bench: SHRI MANU KUMAR GIRI, HON’BLE JUDICIAL MEMBE, SHRI S. R. RAGHUNATHA, HON’BLE (Accountant Member)4 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed its previous decisions and the Madras High Court ruling, holding that the filing of Form 67 under Rule 128 is directory in nature. Therefore, the Assessing Officer was directed to grant the Foreign Tax Credit to the assessee.

What were the facts?

The revenue appealed against the CIT(A)'s order allowing Foreign Tax Credit to the assessee for AY 2019-20 and 2020-21. The CIT(A) held that filing Form 67 was directory, not mandatory, and allowed the credit despite late filing.

What were the issues?

Whether the filing of Form 67 along with the return of income is mandatory or directory for claiming Foreign Tax Credit.

Which sections of the Income-tax Act were involved?

Rule 128

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI MANU KUMAR GIRI, HON’BLE JUDICIAL MEMBE & SHRI S. R. RAGHUNATHA, HON’BLE

Hearing: 24.06.2024Pronounced: 28.06.2024

आयकर अपीलीय अिधकरण, ‘बी ’ �यायपीठ, चे�ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI �ी मनु कुमार िग�र, �याियक सद�य एवं �ी एस. आर. रघुनाथा, लेखा सद�य के सम� BEFORE SHRI MANU KUMAR GIRI, HON’BLE JUDICIAL MEMBE AND SHRI S. R. RAGHUNATHA, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA Nos.: 972 & 973/Chny/2024 िनधा�रण वष� / Assessment Years: 2019-20 & 2020-21 Sandeep Kumar Singh, Income Tax Officer, v. Flat No. 1-G, Door No. 148, Room No. 607, 6th Floor, Annex Prithvi Apartments, Perambur Building, 121 M.G. Road, Barracks Road, Chennai – 600 034. Vepery, Chennai – 600 007. [PAN: ASHPS-1760-N] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Shri. N. Vijay Kumar, CA ��यथ� क� ओर से/Respondent by : Shri. D. Hema Bhupal, JCIT सुनवाई की तारीख/Date of Hearing : 24.06.2024 घोषणा की तारीख/Date of Pronouncement : 28.06.2024 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:

1.

Aforesaid appeals by revenue for Assessment Years (AY) 2019-20 and 2020-21 arises out of two separate orders passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 19-02-2024 in the matter of an order passed by the Assessing Officer u/s 154 of the Act on 02.02.2023 and 03.08.2022, denying Foreign Tax Credit of Rs.1,78,791/- and Rs.2,40,721/- for assessment years 2019-20 and 2020-21, respectively. Since the assessee

:-2-: 972 & 973/Chny/2024 did not file Form 67 along with the return of income. The assessee filed Form 67 on 16.03.2022 for Rs.2,40,721/- for the assessment year 2020-21 and on 25.11.2021 for Rs.1,78,791/- for the assessment year 2019-20. The Ld. CIT(A), considering the Form no. 67 filed for both the assessment years by the assessee during the first appellate proceedings as the filing of this firm in terms of Rule 128 was only directory in nature and hence directed the Assessing Officer to accept the tax credit and allowed the appeal. Aggrieved, the revenue is in further appeal before us.

2.

At the outset, we find that there is a delay of 5 days in appeal filed by the revenue in 2020-21, for which petition for condonation of delay along with reasons for delay has been filed. After considering the petition filed by the revenue and also hearing both the parties, we find that there is a reasonable cause for the revenue in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the revenue for adjudication.

:-3-: 972 & 973/Chny/2024 3. We find that this issue has been decided in assessee’s favour by this Tribunal in the case of (i) ITO vs. Smt. Chengam Durga (ITA No.1491/Chny/2023 dated 08-04- 2024) (ii) Amit Singh Baid Mehta vs ADIT, CPC in ITA No. 265 & 266/Chny/2023 dated 28.06.2013 and 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. AO to grant impugned Foreign Tax Credit to the assessee.

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