Bachaspatimayum Umakanta Sharma Vs Dy. CIT (ITAT Chandigarh)
In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Chandigarh held that the assessee, Bachaspatimayum Umakanta Sharma, cannot be denied the Foreign Tax Credit (FTC) merely due to a delay in submitting Form 67. This decision came in response to an appeal filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated December 8, 2022, for the assessment year 2020-21.
Background of the Case
The appellant, Bachaspatimayum Umakanta Sharma, filed his income tax return for the year 2020-21 on December 15, 2020, declaring an income of ₹79,17,730, which included ₹4,02,023 as income from shares of Becton, Dickinson (USA). The assessee claimed a tax relief of ₹1,37,974 under Section 90/90A of the Income Tax Act, in accordance with the India-US Double Tax Avoidance Agreement (DTAA).
However, the Centralized Processing Centre (CPC), Bangalore, disallowed the FTC claim while processing the return under Section 143(1) on December 24, 2021. The disallowance was based on the fact that Form 67, which is required for claiming FTC under Rule 128(9) of the Income Tax Rules, was submitted late on October 18, 2021, after the due date for filing the return.
