JANANI RAVI RAMASWAMY ,BANGALORE vs. ITO WARD 24(2)(1), MUMBAI

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ITA 83/CHNY/2024Status: DisposedITAT Chennai15 April 2024AY 2019-20Bench: 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 previous Tribunal and High Court decisions, the AO was directed to grant the Foreign Tax Credit after verifying Form 67.

What were the facts?

The assessee was denied Foreign Tax Credit of Rs. 9,97,696/- for not filing Form 67 along with the return of income. The assessee filed Form 67 subsequently, but the CIT(A) confirmed the denial based on Rule 128 (8) & (9).

What were the issues?

Whether the denial of Foreign Tax Credit for late filing of Form 67 is justified, and if Rule 128 is mandatory or 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, ‘C’ BENCH, CHENNAI

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

आयकर अपीलीय अिधकरण ‘सी’ �ायपीठ चे�ई म�। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय +ी मनोज कुमार अ/वाल ,लेखा सद3 एवं माननीय +ी मनु कुमार िग7र, �ाियक सद3 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM आयकरअपील सं./ (िनधा9रणवष9 / Assessment Year: 2019-20) Janani Ravi Ramaswamy ITO A-1102, Mantri Espana, Ward-24(2)(1) बनाम/ Vs. 67, Kariyammanaagrahar, Mumbai Bangalore, Bellandur SO -560 103. �थायीलेखासं./जीआइआरसं./PAN/GIR No. ADWPR-8702-M (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ� कीओरसे/ Appellant by : Shri Siddesh Nagaraj Gaddi (CA)-Ld.AR � थ�कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 16-04-2024 घोषणा की तारीख /Date of Pronouncement : 16-04-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Addl. / JCIT (Appeals)–Chennai [JCIT(A)] dated 07-12-2023 in the matter of an intimation issued by CPC u/s. 143(1) of the Act on 16-02-2021 denying Foreign Tax Credit of Rs.9,97,696/- for want of filing of Form 67 along with the return of income. The assessee filed this Form on 09-03-2021. 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 after verifying Form No.67. 3. The appeal stand allowed. Order pronounced on 16th April, 2024.

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