Vivek Tiwari Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that filing of Form No. 67 is directory and no mandatory and the credit for foreign taxes cannot be denied for mere delay in filing the Form No. 67. Accordingly, appeal of the assessee allowed.
Facts- The assessee is an individual and was employed with M/s. Microsoft India (R&D) Pvt. Ltd. during AY 2020-21. He was working in India and USA during AY 2020-21 and had received salary in India and USA. Since the assessee was a ‘Resident’ for the purpose of the Income Tax Act, 1961, his global income was taxable in India. He filed his return of income for AY 2020-21 on 28/12/2020 disclosing total income of Rs. 72,20,820/-. The total income of the assessee also included salary income received in the USA at Rs. 58,04,035/- and he also claimed foreign tax credit of Rs. 16,49,094/- u/s 90 of the Act for which he also filed Form-67 on 18/01/2021. Since Form No. 67 was filed on 18/01/2021, i.e. after the due date of filing the return of income u/s 139(1) of the ITA, 1961 i.e. 10/01/2021, AO, CPC processed the return of income u/s 143(1) of the ITA, 1961 on 24/12/2021, without granting foreign tax credit of Rs. 16,49,094/- and raised tax demand of Rs. 20,80,790/-. The assessee filed a rectification return of income before the CPC; however, the CPC did not grant credit of foreign tax of Rs. 20,80,790.
