Nitin Khurana Vs ITO (ITAT Delhi)
The Delhi Bench of the ITAT heard the appeal of individual for AY 2023‑24 against the order of CIT(A). The dispute arose from denial of Foreign Tax Credit (FTC) on foreign income due to a 9‑day delay in filing Form 67, which led CPC to disallow the claim and raise tax liability with interest. The assessee argued that filing Form 67 is procedural, not mandatory, and relied on judicial precedents including the Delhi High Court ruling in Real Time Data Services Pvt. Ltd. The Tribunal agreed, holding that a procedural lapse cannot extinguish a substantive right. Respectfully following the High Court, ITAT directed the AO to consider the belated Form 67 and allow FTC after verification. The appeal was allowed and matter restored to AO for verification.
FULL TEXT OF THE ORDER OF ITAT DELHI
The above captioned appeal is preferred against the order dated 30.06.2025, passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as, “Act”) by Commissioner Income Tax (Appeal), Coimbatore [for short, Ld. CIT(A)].
2. The assessee has raised following grounds of appeal:
“1. That the Central Processing Center (CPC) passed the rectification order under section 154 of the Income tax Act,1961 confirming following additions / adjustments made in the tax liability of the appellant while processing the income tax return u/s 143 (1) of the Income Tax Act, 1961:
