Prakash Narayanan Vs DCIT (ITAT Bangalore)
ITAT Bangalore allows foreign tax credit based on revised form 67 & rejects denial on mere technicality of late filing
Assessee, a salaried individual, filed a revised return & a revised Form 67 claiming foreign tax credit (FTC) of ₹13,24,710 u/s90, instead of ₹8,50,562 claimed earlier. AO allowed relief only as per the original Form 67, citing delay in filing of the revised Form 67. CIT(A) upheld AO’s denial of additional FTC.
Assessee approached the Tribunal challenging the denial of FTC based on revised Form 67. Assessee argued that he had furnished the supporting documents in respect of FTC claimed & also field the revised form 67 while filing the revised return & therefore entitled for the relief of FTC as claimed in the revised form 67.
Dept argued that AO had considered the original form 67 & granted the necessary relief & not granted the relief as per the revised form 67 on the ground that the said form 67 was not filed in time.
Tribunal noted that even though, AO had considered the revised return, had not granted FTC claimed in the revised form 67. The Statute made it clear that the tax paid by the assessee in the foreign country need not again be taxed in India & therefore in order to avoid the double taxation, the provision was made in the Act. If the object of the legislature is clear, the same cannot be denied by citing some irrelevant facts. Tribunal followed the decision in Ms. Brinda RamaKrishna vs. ITO in ITA No. 454/Bang/2021 dated 17/11/2021 & Hertz Software India (P.) Ltd. vs. ACIT.
