Case Law Details
Milind Moreshwar Pimpalkhare Vs DDIT (ITAT Pune)
ITAT Pune restored the matter back to the file of AO for examining the claim of Foreign Tax Credit of the assessee vis-à-vis furnishing of the Certificate or Statement as per Rule 128(8)(ii) along with Form No. 67.
Facts- The assessee, at the material time, was working as a salaried employee with BolashakAtyrau LLP, Kazakhstan. He earned a gross salary of Rs. 79,53,339/- from his foreign employer, on which a deduction of tax at source in Kazakhstan was made for a sum of Rs. 7,95,334/. He filed his return declaring salary received from his Kazakhstan employer and also claimed credit for foreign tax. The return was processed u/s.143(1) of the Act denying the benefit of the FTC. The assessee moved rectification application u/s.154 of the Act in this regard, which came to be dismissed. No succour was provided in the first appeal on the ground that the assessee filed requisite Form No.67 as prescribed under Rule 128 beyond the due date prescribed u/s.139(1) of the Act. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.
Conclusion- The assessee furnished Form No.67 on 29-12-2022 which is well before the time. The dual requirements on this count are to furnish the statement in Form No.67 as per rule 128(8)(i) and also Certificate or Statement referred to in Rule 128(8)(ii). The assessee placed on record the evidence of filing of Form No.67 on 29-12-2022. He further submitted that this Statement refers to certain “download attachments‟. His contention was that the Certificate or Statement under Rule 128(8)(ii) actually accompanied Form No.67. However, it could not be authentically proved that the relevant Certificate or Statement as per clause (ii) of sub-rule (8) of Rule 128 was also furnished along with Form No.67 before 31-03-2023. Under these circumstances, I am of the considered opinion that it would be in the fitness of the things if the impugned order is set-aside and the matter is restored to the file of the AO for examining whether the claim of the assessee of having furnished the Certificate or Statement as per Rule 128(8)(ii) along with Form No. 67 is correct or not? If the same is found to be correct, then the benefit of tax paid by the assessee in Kazakhstan should be allowed because all other requisite conditions have been found above to have been fully satisfied.
FULL TEXT OF THE ORDER OF ITAT PUNE
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