Kasper Pieter Tideman Vs ITO (ITAT Pune)
The case of Kasper Pieter Tideman vs. ITO before the ITAT Pune pertains to the denial of Foreign Tax Credit (FTC) due to the delayed filing of Form 67. The assessee, a resident taxpayer, had declared an income of ₹28,88,780 for AY 2021-22 and claimed FTC of ₹1,48,111 for taxes paid in the USA and the Netherlands. However, the Centralized Processing Centre (CPC), Bengaluru, disallowed the credit in its intimation under Section 143(1) of the Income Tax Act, 1961, on the grounds that Form 67 was filed after the due date prescribed under Rule 128(9) of the Income Tax Rules. The CIT(A) upheld the denial, leading the assessee to appeal before the ITAT.
The assessee contended that under Section 90 of the Income Tax Act and the India-USA (Article 25) and India-Netherlands (Article 23) Double Taxation Avoidance Agreements (DTAAs), the FTC claim cannot be disallowed solely due to procedural lapses. The appellant relied on the rulings in Vinodkumar Lakshmipathi (ITAT Bangalore) and Sonakshi Sinha (ITAT Mumbai), which established that DTAA provisions override domestic tax rules, and that non-filing of Form 67 within the prescribed timeframe does not invalidate FTC claims. Additionally, the CBDT Notification No. 100/2022, which extended the deadline for filing Form 67, was cited to support the claim that such procedural requirements should not restrict substantive rights.
