INCOME TAX OFFICER NCW 19(4), CHENNAI vs. CHENGAM DURGA, CHENNAI

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ITA 1491/CHNY/2023Status: DisposedITAT Chennai08 April 2024AY 2021-2022Bench: HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that filing of Form 67 is directory in nature, not mandatory, following the Madras High Court's decision in Duraiswamy Kumaraswamy. Therefore, the credit should be granted.

What were the facts?

The assessee claimed foreign tax credit (FTC) in their return of income. The CPC denied this credit as Form 67 was not filed within the due date. The assessee filed Form 67 later, but the CPC again denied the claim. The CIT(A) allowed the credit, relying on ITAT decisions.

What were the issues?

Whether filing of Form 67 is mandatory or directory for claiming foreign tax credit, and if it can be condoned.

Which sections of the Income-tax Act were involved?

Section 90,Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHENNAI

Before: HON’BLE SHRI MAHAVIR SINGH, VP & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by Revenue 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 16-10-2023 in the matter of rectification order passed by CPC u/s 154 of the act on 23-08-2022. The grounds raised

by the Revenue read as under:

1. The order of the Ld. CIT(A) is contrary to facts and circumstances of the case.

2. The Ld.CIT(A) erred in holding that filing of Form 67 cannot be treated as mandatory rather it is directory in nature by placing reliance on the decision of ITAT Bangalore in the case of Brinda Ramakrishna Vs. ITO in and decision of the ITAT, Jaipur in ITA No.71/JP /2023 dated 10.05.2023.

3. The Ld. CIT(A) erred in allowing relief to the assessee by placing reliance on the decision of ITAT Bangalore in the case of Brinda Ramakrishna Vs. ITO in ITA No.454/Bang/2021 and decision of the ITAT, Jaipur in ITA No.71/JP/2023 dated 10.05.2023 whereas it is settled law that power of condonation of CBDT/Central Govt. cannot be taken away by any other person. As is evident, the revenue is aggrieved by grant of foreign tax credit (FTC) despite the fact that Form No.67 was not filed by the assessee within due date of filing of return of income. Having heard rival submissions, our adjudication would be as under.

2. The assessee filed return of income on 09.09.2021 and claimed relief u/s 90 for Rs.1.51 Lacs. The return was processed by CPC u/s 143(1) on 05.07.2022 wherein this credit was denied since the assessee did not file applicable Form No.67 to claim the said relief. The assessee filed Form No.67 along with rectification application u/s 154 on 18.07.2022 in respect of her claim. However, CPC again denied the same in an intimation issued u/s 154. Upon further appeal, Ld. CIT(A), relying on the decision of Bangalore Tribunal in the case of Brinda Ramakrishna vs ITO (ITA No.454/Bang/2021 dated 17.11.2021), directed Ld. AO to grant the credit as per Form No.67. Aggrieved, the revenue is in further appeal before us.

3. We find that this issue is squarely covered by the cited decision of Bangalore Tribunal. Recently, 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 aforesaid form in terms of Rule 128 is only directory in nature. The rule is only for the implementation of the provisions of the act and it will always be directory in nature. Respectfully following the same, we dismiss the appeal.

4.

The appeal stand dismissed. Order pronounced in open court on 08th April, 2024. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा23 / VICE PRESIDENT लेखा सद5 / ACCOUNTANT MEMBER चे7ई Chennai; िदनांक Dated : 08-04-2024 DS आदेशकीAितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु?/CIT 4. िवभागीय�ितिनिध/DR 5. गाडDफाईल/GF

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