Denial of Foreign Tax Credit merely because Form 67 furnished after due date of return filing is unjustified

Sanjeev Agarwal Vs DCIT (ITAT Jaipur)

ITAT Jaipur held that denial of Foreign Tax Credit merely because Form 67 was filed after the due date of filing the return under section 139(1) of the Income Tax Act is unjustified and untenable in law.

Facts- The issue is that part of the income of the assessee was received from outside India. Notably, the assessee considered income of Rs. 21,56,330/- earned in UK as part of his total income offered for tax in India.

Against the income earned in UK, assessee paid tax of Rs. 2,32,870/- in UK. Resultantly, while filing the return of income, assessee took credit of the tax paid in UK of Rs. 2,32,870/-, in accordance with section 90/91 of the IT Act. Form 67 was filed on 02.11.2019.

AO, while processing return of income u/s. 143(1) of IT Act, 1961, rejected the Foreign Tax Credit claimed of Rs. 2,32,870/- on the ground that assessee filed the Form 67 for claiming FTC after the due date prescribed u/s. 139(1) relevant for the year under consideration, and raised demand against the assessee of such amount including interest.

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