Deepak Pragjibhai Gondaliya Vs PCIT (Gujarat High Court)
The Gujarat High Court heard a writ petition challenging the order dated 23.12.2022 passed by the Principal Commissioner of Income Tax, Vadodara-1 under Section 119(2)(b) of the Income-tax Act, 1961 rejecting the petitioner’s application for condonation of delay in filing Form No. 67 for Assessment Year 2020-21.
The petitioner had filed the return of income for AY 2020-21 declaring total income of ₹1,37,73,200. During the relevant period, the petitioner was employed with Square Pharmaceutical Limited in Bangladesh and earned salary income of ₹42,46,561 (Indian currency), on which tax had been paid in Bangladesh. The petitioner claimed entitlement to foreign tax credit of ₹13,03,772 under the Double Taxation Avoidance Agreement (DTAA) between India and Bangladesh. Although the return was processed under Section 143(1), the petitioner had not filed Form No. 67 before the due date prescribed under Rule 128 of the Income-tax Rules, 1962. The form was subsequently filed on 04.01.2022 after issuance of the intimation under Section 143(1). The petitioner thereafter sought condonation of delay under Section 119(2)(b), but the application was rejected on the ground that no genuine hardship had been established, as the petitioner had merely stated that Form No. 67 had been omitted inadvertently. Applications under Section 154 and an appeal before the Commissioner (Appeals) also failed.
