Jaspal Singh Bindra Vs DCIT (ITAT Kolkata)
In Jaspal Singh Bindra Vs DCIT, the ITAT Kolkata allowed the appeal of the assessee and directed grant of Foreign Tax Credit (FTC) under Section 90 of the Income Tax Act despite delay in filing Form No. 67.
The assessee challenged the order of the CIT(A), Kolkata-22, which had upheld denial of FTC amounting to Rs.34,09,987/- claimed in respect of taxes paid in the United Kingdom on pension income earned there. The assessee, being a resident of India, had offered pension income of Rs.1,70,49,933/- earned in the UK to tax in India and claimed FTC under Section 90 of the Act. The claim was denied because Form No. 67 was not filed on or before the due date for filing return under Section 139(1).
The Tribunal noted that the assessee filed the return of income on 31.10.2022 declaring total income of Rs.76,76,96,410/-. Since taxes of Rs.34,09,987/- had already been paid in the UK on pension income, relief under the India-UK Double Taxation Avoidance Agreement (DTAA) was claimed. However, in the intimation issued under Section 143(1), the Assessing Officer denied the FTC on the ground that Form No. 67 had not been filed within the prescribed timeline. The assessee admitted that Form No. 67 was filed belatedly on 30.01.2024 after issuance of the intimation under Section 143(1), but argued that the delay was only a procedural defect and should not defeat substantive relief.
