Deepak Shimoga Padmaraju Vs The Asst. Director of Income Tax (ITAT Bangalore)
The case of Deepak Shimoga Padmaraju Vs The Assistant Director of Income Tax pertains to the denial of Foreign Tax Credit (FTC) by the Centralized Processing Centre (CPC) in Bangalore for the Assessment Year (AY) 2021-22. The denial was based on the late filing of Form 67, a procedural requirement under Rule 128(9) of the Income Tax Rules, 1962. The assessee, who earned income in Germany, claimed an FTC of ₹5,93,444 but filed Form 67 after the return filing deadline. Despite arguing that relief under the Double Taxation Avoidance Agreement (DTAA) should be granted, the CIT(A) dismissed the appeal, emphasizing the mandatory nature of timely filing Form 67.
On appeal to the ITAT Bangalore, the Tribunal examined previous rulings, including those that supported the non-mandatory nature of filing Form 67 within the due date. The Tribunal referenced a decision that ruled the FTC should not be denied based on procedural delays and highlighted that DTAA provisions supersede procedural requirements. Consequently, the Tribunal acknowledged that FTC claims should not be automatically disallowed for late submission of Form 67, as the DTAA provides substantial rights to claim tax credits.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
