Case Law Details
Satreena Consultants Pvt. Limited Vs ITO (ITAT Kolkata)
ITAT Kolkata held that filing of Form 67 is directory in nature. Accordingly, benefit of relief of withholding tax credit in Tanzania against the tax liability arising in India allowed.
Facts- The assessee-company is engaged in providing Tea Consultancy Services in Tanzania. The payment for providing Tea Consultancy Services for F.Y. 2015-16 from Tanzania was received after deduction of withholding taxes of Rs.21,24,975/-. Income of Rs.24,72,879/- declared in the income tax return filed in India. Relief under section 90 of the Act was claimed towards withholding taxes paid in Tanzania against the tax liability in India at Rs.7,38,649/-. However, this claim of the assessee was denied for not filing Form 67, which as per the Central Processing Centre was mandatory to claim relief under section 90 of the Act. Thereafter the assessee filed a revised return on 20.09.2018 and also filed Form 67 alongwith it. The assessee failed to get any relief. Again the assessee filed rectification application under section 154 of the Act, but the relief under section 90 was denied on the ground of alleged delay in filing Form No. 67.
Aggrieved, the assessee preferred appeal before the ld. CIT (Appeals), however, the assessee was not granted foreign tax credit. Aggrieved, the assessee is now in appeal before the Tribunal.
Conclusion- I am of the considered view that the claim of the assessee towards withholding taxes paid in Tanzania is to be given against the tax liability on the income declared in India. Even otherwise filing of Form 67 has been held to be directory in nature by the Coordinate Bench, Mumbai in the case of Sonakshi Sinha –vs.- CIT(A) [ITA No.1704/MUM/2022] (Mumbai Tribunal).
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