Jaspal Singh Bindra Vs DCIT (ITAT Kolkata)
ITAT Kolkata Ruling on Foreign Tax Credit: Jaspal Singh Bindra vs. DCIT: The Income Tax Appellate Tribunal (ITAT) Kolkata ruled in favor of Jaspal Singh Bindra, directing the Assessing Officer (AO) to allow his Foreign Tax Credit (FTC) claim of ₹34,09,987 under Section 90 of the Income Tax Act. Bindra, an Indian resident, had declared pension income of ₹1,70,49,933 from the UK in his return filed on October 31, 2022. However, the Centralized Processing Center (CPC), Bengaluru, denied his FTC claim because Form 67 was submitted late, on January 30, 2024, after the assessment year ended. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the disallowance, stating that Rule 128 of the Income Tax Rules mandates timely filing of Form 67.
ITAT Kolkata, however, observed that the provisions of the Double Taxation Avoidance Agreement (DTAA) override Section 90 when more beneficial to the taxpayer. Citing similar cases, including Sukhdev Sen vs. ACIT, the tribunal ruled that Rule 128(9) does not bar FTC claims due to delayed filing. Since FTC is a vested right and Form 67 was eventually submitted, ITAT concluded there was no justification for denying the credit. The tribunal set aside the CIT(A) order and directed the AO to allow FTC in accordance with the DTAA between India and the UK. This ruling reinforces that procedural lapses should not hinder legitimate tax relief claims.
