ASAN MEERA SAHIB,TIRUNELVELI vs. ITO, WARD-1, TIRUNELVELI

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ITA 58/CHNY/2024Status: DisposedITAT Chennai16 April 2024AY 2021-22Bench: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI (Judicial Member)2 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 held that filing Form 67 is directory in nature, not mandatory. Following a previous decision and a High Court ruling, the Tribunal directed the AO to grant the Foreign Tax Credit.

What were the facts?

The assessee was denied Foreign Tax Credit of Rs.3,86,724/- for not filing Form 67 along with the return of income. The CIT(A) confirmed this denial based on Rule 128 (8) & (9).

What were the issues?

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

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, ‘C’ BENCH, CHENNAI

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

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 20-12-2023 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 21-09-2022 denying Foreign Tax Credit of Rs.3,86,724/- for want of filing of Form 67 along with the return of income. The assessee filed this Form on 21-09-2022. 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 16th April, 2024.

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