Case Law Details
Shri. Vardhan Vishwanath Vijaya Vs ITO (ITAT Bangalore)
In so far as the credit for taxes paid in US is concerned, one of the requirements is that the assessee has to file Form 67 which was filed before the AO only after the date of intimation under section 143(1) of the Act. Filing of Form No.67 is only a procedural requirement and therefore that cannot be the basis to deny credit for taxes paid in US. I am of the view that the AO shall consider the claim of the assessee for credit for taxes paid in USA also in the set aside proceedings. The AO will afford opportunity of being heard to the assessee in the set aside proceedings. I, therefore, allow appeal of the assessee for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGLORE
This is an appeal by the assessee against the order dated 29.11.2021 of National Faceless Appeal Centre, Delhi, relating to Assessment Year 2018-19.
2. The assessee, an individual, filed return of income for Assessment Year 2018-19 declaring a total income of Rs.14,29,490/-. The assessee is a salaried employee. The assessee has income under the head – salary, income from house property, capital gain and income from other sources including foreign dividends. In the return of income, the assessee claimed credit for taxes paid in USA on dividends received in USA, under section 90 of the Income Tax Act, 1961 (hereinafter called ‘the Act’), of a sum of Rs.1,56,820/-. Apart from denying credit for tax paid in USA, on dividend income earned in USA, the AO also made 3 other adjustments to the total income returned by the assessee in the intimation dated 28.05.2020 under section 143(1) of the Act. One of the adjustment so made, resulting in an addition of Rs.2,35,108 to the total income declared by the Assessee, is an addition on account of difference in figures between Schedule SI (Income that are subject to a special rate of tax) and Schedule CG (capital gain) and Schedule OS (Other source). The action of the AO was confirmed by the First Appellate Authority. Hence, this appeal by the assessee, before the Tribunal.
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