Disallowance of Foreign Tax Credit for delay in filing of Form 67 is untenable

Ritesh Kumar Garg Vs ITO (ITAT Jaipur)

ITAT Jaipur held that filing of Form 67, for claiming Foreign Tax Credit, is a procedural requirement and violation of procedural norms doesn’t extinguish the substantive right of claiming the credit of Foreign Tax.

Facts-

Assessee is a salaried person and during the year under consideration he was employed with M/s. Infosys Limited. The assessee has been sent abroad and posted in Finland for service by his employer i.e. M/s. Infosys Limited where he received salary and paid the taxes of that country of which Form 67 has been filed by the assessee. The said Form 67 was filed on-line on 01.01.2020 and claimed relief under section 90 of the Act of Rs. 1,67,300/-. However, the said claim of the assessee was denied by the AO. Aggrieved by the order of the AO, the assessee preferred appeal before the ld. CIT (A). The ld. CIT (A) after considering the case of the assessee, dismissed the appeal filed by the assessee by upholding the disallowance made by the AO under section 90 of the Act. Being aggrieved, the present appeal is filed.

Notably, the said relief was denied by the revenue authorities on the ground that the return for the year under consideration was filed by the assessee on 25.11.2020. However, the form 67 was filed on 27.04.2021 and not along with the return of income filed on 25.11.2020.

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