Bhaskar Dutta Vs DCIT (ITAT Delhi)
In this appeal, the assessee, a non-resident individual, challenged the order of the Commissioner of Income Tax (Appeals)-42, New Delhi, pertaining to the 2020-21 assessment year. The primary issue is the rejection of the assessee’s claim for foreign tax credit (FTC) amounting to ₹25,43,643 due to the delayed filing of Form 67. The Centralized Processing Centre (CPC) rejected the FTC claim since Form 67 was not filed before the due date of the income tax return. Despite filing a revised return and submitting Form 67 later, the rectification request under Section 154 was denied. The Commissioner (Appeals) upheld this decision, citing Rule 128 and the mandatory nature of timely filing Form 67 as prescribed by the Central Board of Direct Taxes (CBDT) notification.
The assessee’s counsel argued that due to the restrictions imposed by the COVID-19 pandemic, the Hon’ble Supreme Court had extended filing deadlines for legal proceedings, including income tax filings. They contended that the filing of Form 67 on 31st May 2021 fell within the extended limitation period provided by the Court. Additionally, the assessee cited judicial precedents stating that the provisions of Rule 128(9) are directory, not mandatory, and do not warrant the disallowance of FTC for delayed filing. The Tribunal will decide based on these arguments, previous rulings, and the Supreme Court’s COVID-19-related extensions.
