Neeta Makkar Vs DCIT (ITAT Kolkata)
The ITAT Kolkata allowed the assessee’s appeal and held that the denial of foreign tax credit (FTC) of ₹8,81,398 solely because Form No. 67 was filed after the due date was not sustainable. The assessee had filed the return of income declaring total income of ₹83,88,210, and while the assessment accepted the returned income, the Assessing Officer denied the FTC claimed under Section 90 of the Income-tax Act. The Commissioner (Appeals) upheld the denial on the ground that Form No. 67 had been filed after the due date for filing the return. The Tribunal observed that the issue was covered by a series of coordinate bench decisions holding that delayed filing of Form No. 67 is a procedural lapse and not a fundamental defect. Following those decisions and the judicial precedents referred to therein, the Tribunal held that the assessee was entitled to the FTC and directed the Assessing Officer to grant the credit as claimed.
Core Issue: The principal issue before the Tribunal was whether the assessee could be denied Foreign Tax Credit (FTC) under section 90 of the Income-tax Act merely because Form No. 67 was filed after the due date prescribed under Rule 128(9) of the Income-tax Rules, despite the foreign taxes having been duly paid and the credit otherwise being admissible under the applicable Double Taxation Avoidance Agreement (DTAA).
