Hemlata Patel Vs ITO (ITAT Indore)
The present appeal was filed before the Income Tax Appellate Tribunal (ITAT), Indore Bench, under Section 253 of the Income Tax Act, 1961, challenging the order dated 11.02.2025 passed by the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2023-24. The dispute originated from an intimation issued under Section 143(1) dated 22.03.2024, whereby a demand of ₹1,29,640 was raised after disallowing Foreign Tax Credit (FTC) of ₹1,49,437 claimed under Sections 90/90A.
The assessee, a pensioner of the Government of the United Kingdom (noted as USA in the intimation order), had been a non-resident until Assessment Year 2022-23 and became resident in India during the relevant year. She filed her return of income (ROI) on 31.12.2023 under Section 139(4), declaring total income of ₹35,30,130. On the same date, she electronically filed Form No. 67 for claiming FTC of ₹1,49,437 in respect of tax deducted in the United Kingdom on pension income. Annexure FSI indicated foreign income of ₹12,28,675, foreign tax paid of ₹1,49,437, and the relevant DTAA article as 24.
While processing the return under Section 143(1), the Central Processing Centre (CPC) disallowed the FTC claim on the ground that Form No. 67 was not filed within the prescribed time limit, i.e., before the due date under Section 139(1), which was 31.07.2023. The intimation order nullified the refund claimed in the ROI and raised a demand.
