NAGA SIVA KUMAR KONDRI,VIJAYAWADA vs. ASSISTANT DIRECTOR OF INCOME TAX, CENTRALIZED PROCESSING CENTER, BENGALURU
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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI DUVVURU RL REDDY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE
PER S. BALAKRISHNAN, Accountant Member :
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-10, Hyderabad [Ld. CIT(A)] vide DIN & Order No. ITBA/APL/S/250/2022-23/1044862537(1), dated 23/08/2022
2 arising out of the order passed U/s. 143(1) of the Income Tax Act,
1961 [the Act] dated 24/12/2021 for the AY 2020-21.
Brief facts of the case are that the assessee is an having
residential status of Resident and Ordinarily Resident, filed his
return of income on 31/3/2021 admitting a total income of Rs.
83,77,420/-for the AY 2020-21 and also claimed a foreign tax
credit of Rs. 17,55,145/-. The return of income was summarily
processed by CPC which denied the foreign tax credit as claimed
by the assessee. Aggrieved by the order of the CPC, the assessee
filed an appeal before the Ld. CIT(A), Hyderabad. The Ld. CIT (A)
considering the provisions of Rule 128(1) of the Income Tax
Rules, 1962, dismissed the appeal of the assessee stating that
the assessee has not filed a statement in Form-67 on or before
the due date specified for filing the return of income u/s. 139(1)
of the Act. Aggrieved by the order of the Ld. CIT(A), the assessee
is in appeal before the Tribunal.
At the outset, the Ld. AR argued that the assessee filed its
original return of income on 15/2/2021 which is the extended
due date allowed by the Central Board of Direct Taxes [CBDT]
due to Covid-19. The Ld. AR further submitted that statement in
3 Form-67 was filed on 31/3/2021. The Ld. AR relied on THE
TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF
CERTAIN PROVISIONS) ACT, 2020 and invited our attention to Clause-
3(1)(b) which is stated as below:
“(b) filing of any appeal, reply or application or furnishing of any report, document, return or statement or such other record, by whatever name called, under the provisions of the specified Act;”
The Ld. AR further submitted that Form-67 is a statement to
be filed by the assessee and hence covered by the above
definition. The Ld. AR also further pointed out that
notwithstanding anything contained in the Specified Act, the due
date for submitting any statement as defined above is extended to
31/3/2021. Further, the Ld. AR submitted that as per the press
release dated 30/12/2020, the Ministry of Finance, in view of the
challenges faced by the tax payers in meeting the Statutory and
Regulatory compliance due to the outbreak of COVID-19, the
Government brought the Taxation and Other Laws (Relaxation of
Certain Provisions) Ordinance, 2020 (the Ordinance) on
31/3/2020 which was extended vide Notification No. 88/2020/F,
No. 370142/35/2020-TPL upto 31/1/2021. The Ld. AR further
submitted that as per Clause-(b) of Sl.No.4 of the Press Release
4 (supra) the due date for furnishing of Income Tax returns for AY
2020-21 covered u/s. 44AB of the Act has been extended to
15/2/2021. Accordingly, the assessee has filed the return of
income on 15/2/2021 and filed the statement of Form-67 on
31/3/2021. The Ld. AR therefore pleaded that the assessee has
complied with the extended due date and hence the claim of
foreign tax credit shall be allowed to the assessee.
Per contra, the Ld. DR relied on the order of the
Jurisdictional Tribunal in ITA No. 269/Viz/2021 (AY: 2018-19),
dated 14/06/2022 in the case of Muralikrishna Vaddi vs.
ACIT/DCIT. The Ld. DR submitted that since Rule 128 of the IT
Rules, 1962 specifies “shall”, the Form-67 ought to have been
filed within the due date specified U/s. 139(1) of the Act.
Contending the above, the Ld. AR submitted that the assessee
has filed his return of income within the extended due date and
has filed the statement in Form-67 within the extended due dates
and hence the argument of the Ld. DR is not in accordance with
the extended provisions applicable to the assessee during the
COVID Pandemic.
We have heard both the parties and perused the materials
available on record as well as the orders of the Ld. Revenue
5 Authorities. Admittedly, the foreign tax credit is claimed by the
assessee by filing the statement in Form-67 on 31/3/2021. We
find that as argued by the Ld. AR, THE TAXATION AND OTHER
LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS)
ACT, 2020 allows any statement to be filed on or before 31/3/2021.
Further, the Ld. AR also demonstrated that the assessee is subjected to
audit U/s. 44AB of the Act since the assessee is engaged in the business
of trading in Futures & Options and has claimed a loss during the
impugned assessment year. We therefore find that as per Sl.No.4(b) of
the Press Release for extension of time limits dated 30/12/2020, the
period has been extended for filing the return of income upto 15/2/2021.
We therefore find that the assessee has rightly filed the return of income
on or before the due date for filing the return of income and also the
statement in Form-67 within the extended due date of 31/3/2021. In
the case Muralikrishna Vaddi (supra) relied on by the Ld. DR the facts
are distinguishable inasmuch as in that case Form 67 was filed after
commencement of scrutiny proceedings by the Ld. AO and after a delay
of more than 2 years. However, in the present case the assessee has
filed the return of income and the statement in Form-67 within the
respective due dates as extended by the Ministry of Finance, Government
of India. We are therefore of the considered view that the foreign tax
6 credit of Rs. 17,55,145/- shall be allowed to the assessee. The Ld. AO is directed to give the credit to the foreign tax credit as claimed by the assessee after verifying the correctness of the claim made by the assessee. It is ordered accordingly.
In the result, appeal filed by the assessee is allowed.
Pronounced in the open Court on the 29th March, 2023.
Sd/- Sd/- (दु�वू� आर.एल रे�डी) (एस बालाकृ�णन) (DUVVURU RL REDDY) (S.BALAKRISHNAN) �या�यकसद�य/JUDICIAL MEMBER लेखा सद�य/ACCOUNTANT MEMBER Dated : 29.03.2023 OKK - SPS आदेश क� ��त�ल�प अ�े�षत/Copy of the order forwarded to:- �नधा�रती/ The Assessee – Naga Siva Kumar Kondri, D.No. 27-14/2, Ganesh 1. Street, RR Nagar, Kabela Centre, Vijayawada, Andhra Pradesh – 520012. राज�व/The Revenue – Income Tax Officer, Ward (International Taxation), CR 2. Building, Vijayawada, Andhra Pradesh-520001. 3. The Principal Commissioner of Income Tax, आयकर आयु�त (अपील)/ The Commissioner of Income Tax (A)-10, Hyderabad. 4. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, �वशाखापटणम/ DR, ITAT, 5. Visakhapatnam गाड� फ़ाईल / Guard file 6. आदेशानुसार / BY ORDER
Sr. Private Secretary ITAT, Visakhapatnam
