Narendra Vishnubhai Mistry Vs ITO (ITAT Ahmedabad)
In the case of Narendra Vishnubhai Mistry vs. ITO, the Ahmedabad ITAT addressed whether procedural delays in filing Form 67 could bar a taxpayer from claiming Foreign Tax Credit (FTC). The assessee filed a return of income for AY 2021-22 and claimed FTC for taxes paid abroad. However, the claim was denied during processing under Section 143(1) of the Income Tax Act due to the late submission of Form 67, as required by Rule 128. The Assessing Officer rejected a rectification request citing procedural delays, and the CIT(A) upheld this decision.
The ITAT emphasized that procedural lapses should not override substantive rights when the taxpayer has complied with the substantive provisions of paying taxes in both jurisdictions. The tribunal noted that the taxes paid abroad and the eligibility for FTC were undisputed, making the delay in filing Form 67 inconsequential to the claim’s validity. Consequently, the ITAT directed the Revenue to grant the FTC and rectify the earlier assessment. This ruling reinforces the principle that procedural delays should not lead to unjust denial of statutory entitlements.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order passed by the office of the Commissioner of Income-tax (Appeals), ADDL/JCIT(A)-7, Mumbai (hereinafter referred to as “CIT(A)” for short), dated 14.06.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act” for short], for Assessment Year (AY) 2021-22.
