Nanda Kishore Ravula Vs ADIT (International Tax) (ITAT Hyderabad)
ITAT Hyderabad held that denial of credit for Foreign Tax Credit merely due to delay in filing of Form 67 not justified as Form 67, although belatedly, was filed before the AO passed order u/s 143(3) of the Act. Accordingly, appeal allowed.
Facts- The assessee, an individual, filed his original return of income for the A.Y.2020-21 on 15.12.2020. Subsequently, the assessee filed revised return of income on 30.03.2021 and claimed Foreign Tax Credit (“FTC”) of Rs.21,57,343/-. The return of income filed by the assessee has been processed by the AO(CPC) and intimation u/s 143(1) dated 24.12.2021 was issued by rejecting the FTC claimed by the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Since the assessee has filed relevant Form 67 although belatedly, before the AO passed order u/s 143(3) of the Act, in our considered view, the AO ought to have allowed credit for FTC on the basis of relevant Form 67 by the assessee.
Held that the AO erred in denying credit for FTC claimed by the Assessee. The Ld.CIT(A) without appreciating the relevant facts, simply dismissed the appeal filed by the assessee. Thus, we set aside the order of the Ld.CIT(A) and direct the AO to allow credit for FTC as per Form 67 filed by the assessee. In the result, appeal filed by the assessee is allowed.
