Vinodkumar Lakshmipathi Vs CIT(A) NFAC (ITAT Bangalore)
The case of Vinodkumar Lakshmipathi vs CIT(A) NFAC pertains to the disallowance of foreign tax credit (FTC) for the assessment year 2018-19. This article delves into the grounds of appeal raised by the assessee and the subsequent legal proceedings.
Vinodkumar Lakshmipathi contested the disallowance of FTC on two primary grounds: firstly, that the return of income for AY 2018-19 was filed within the extended due date as per Rule 128(1) of the IT Act, 1961; secondly, the mandatory requirement of filing Form 67 before the due date, which the assessee argued as a procedural rather than substantive condition.
The Income Tax Appellate Tribunal (ITAT), Bangalore, examined these contentions in light of Rule 128(9) of the Income Tax Rules, 1962, which mandates the filing of Form 67 by the due date under section 139(1) of the Act. The tribunal’s decision highlighted the interpretation of procedural versus substantive requirements in claiming FTC under section 90/90A of the IT Act.
The ITAT cited precedents, including the case of Ms. Brinda Ramakrishna (ITA No. 454/Bang/2021), where it was established that non-filing of Form 67 before the due date does not automatically disallow FTC if filed subsequently and before assessment. The tribunal emphasized the overriding nature of Double Taxation Avoidance Agreements (DTAA) under section 90/90A, which provide relief from double taxation on foreign income.
