Real Time Data Services Private Limited Vs PCIT (Delhi High Court)
In Real Time Data Services Private Limited Vs PCIT, the Delhi High Court decided multiple writ petitions involving a common question of law concerning delay in filing Form No. 67 under Rule 128 of the Income Tax Rules, 1962, and denial of Foreign Tax Credit (FTC). The facts of W.P.(C) 959/2024 for Assessment Year 2020–21 were considered.
The petitioner had failed to file Form No. 67 within the prescribed time under Section 139 of the Income Tax Act, 1961. The omission was discovered only after processing of return under Section 143(1)(a), when Foreign Tax Credit of ₹1,01,34,300, being TDS on foreign receipts, was not allowed. The petitioner filed an application under Section 154 for rectification, which remained undecided. It then filed a revision application under Section 264 before the Principal Commissioner of Income Tax (PCIT), which was rejected on 13.12.2023 on the ground that there was no power to condone delay in filing Form No. 67.
The petitioner argued that Section 119 confers wide powers, including condonation of delay, and that Rule 128 is not mandatory. The Revenue contended that there was no provision permitting relaxation under Rule 128, and that only the CBDT or competent authority under Section 119 could exercise such power when invoked.
