KALYANASUNDARAM CHANDRASEKARAN,CHENNAI vs. ASSISTANT DIRECTOR OF INCOME TAX (CPC), BENGALURU

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ITA 382/CHNY/2024Status: DisposedITAT Chennai08 May 2024AY 2021-2022Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)2 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that filing Form 67 is directory in nature, not mandatory, following previous High Court and Tribunal decisions. Therefore, the assessee should be granted the Foreign Tax Credit.

What were the facts?

The assessee was denied Foreign Tax Credit of Rs. 1,27,637/- because Form 67 was not filed along with the return of income. The assessee filed Form 67 later, but the CIT(A) confirmed the denial based on Rule 128 (8) & (9).

What were the issues?

Whether the non-filing of Form 67 along with the return of income mandates the denial of Foreign Tax Credit, or if the provision is directory.

Which sections of the Income-tax Act were involved?

Section 143(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

आयकर अपीलीय अिधकरण ‘ए’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी मनोज कुमार अ/वाल ,लेखा सद4 एवं माननीय +ी मनु कुमार िग7र, �ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा9रणवष9 / Assessment Year: 2021-22) Shri Kalyanasundaram Chandrasekaran ITO बनाम/ No.26, Vaidyaraman Street, International Taxation Vs. T.Nagar, Chennai – 600 017. Ward-1(1), Chennai. �थायीलेखासं./जीआइआरसं./PAN/GIR No. AADPC-7596-C (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri Harshavardhan (Advocate) – Ld. AR � थ�कीओरसे/Respondent by : Shri AR V Sreenivasan (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 01-05-2024 घोषणा की तारीख /Date of Pronouncement : 08-05-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 19-01-2024 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 30-05-2022 denying Foreign Tax Credit of Rs.1,27,637/- since the assessee did not file Form 67 along with the return of income. The assessee filed this Form on 27-10-2022. The Ld. CIT(A) confirmed the denial of Foreign Tax Credit considering the provisions of Rule 128 (8) & (9) which mandate the assessee to file this form along with the return of income. Aggrieved, the assessee is in further appeal before us.

2.

We find that this issue has been decided in assessee’s favor by 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. AO to grant impugned Foreign Tax Credit to the assessee. 3. The appeal stand allowed. Order pronounced on 8th May, 2024 Sd/- Sd/- (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) �ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 08-05-2024 DS आदेशकीNितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF

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