Vaibhav Singh Vs ITO (ITAT Jaipur)
ITAT Jaipur held that delayed filing of Form No. 67 cannot be reason for denial of Foreign Tax Credit since filing of Form 67 is procedural/ directory requirement. Accordingly, appeal allowed and order of CIT(A) set aside.
Facts- The assessee is a salaried employee and has income under the head from salary only. During the year under consideration, assessee worked with Credit Suisse Business Analytics group at USA. He deputed to the Indian office of the company at Credit Suisse Business Analytics (India) Pvt. Ltd., and he joined at Indian office on 25.09.2021. As he resided in India for more than 182 days, therefore as per Income Tax act he become the tax resident and accordingly he filed the return declaring the global income (Income earned in India as well as Outside India) in the Indian ITR as per Income Tax Act 1961.
As the Indian Government has signed Treaty/ for avoidance of Double taxation with USA, therefore, the assessee claimed the relief u/s 90/90A. He claimed relief of Rs. 486,406/-. AO, CPC rejected the claim of relief being claimed u/s. 90 and raised a demand of Rs. 5,50,300/- vide intimation order u/s 143(1)(a) dated 26. 10.2022. The assessee filed an application for rectification u/s 154 as non-allowance of relief was mistake apparent on record. The CPC has not considered the facts of the case and disallowed the whole relief being claimed by the assessee and charged the full tax, and Interest thereon, which resulted in demand of Rs. 5,50,300/-.
