Hirachand Damji Dand Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that denial of claim of Foreign Tax Credit [FTC] for delayed filing of Form No. 67 not sustainable. Accordingly, order set aside and matter restored to file of AO to verify genuineness of the claim.
Facts- The present appeals are filed by the appellant/assessee against the orders of even date i.e. 06.02.2025 of National Faceless Appeal Centre (NFAC), wherein, CIT(A) has dismissed the appeals of the assessee who has challenged the order u/s 154 passed by the AO refusing to rectify the apparent mistake while making adjustment of Rs. 4,88,188/- and Rs. 1,72,931/- on account of Foreign Tax Credit (FTC) u/s 90/90A of the Act for the AY 2019-20 and 2020-21 respectively.
Notably, the tax consultant who filed Return of Income did not file form no. 67 which is one of the essentials while claiming double taxation relief. Therefore, CPC, Bangalore while processing the Return of Income did not allow tax relief as form no. 67 was not filed. Upon realizing the error, the assessee filed Form 67 on 25/03/2021 and then filed rectification application u/s. 154 of the Act that was rejected by CPC.
Conclusion- Held that the end of justice requires the documents GST registration and import export certificate submitted by the assessee before the Tribunal in support of his claim to be proprietor of M/s Blue Lion Entertainment Company needs to be considered by the revenue authorities after due verification of the genuineness of the same which may make the assessee eligible to claim FTC as per the provisions of law. Thus, the impugned order of the Ld. CIT(A) is not legally sustainable in the eyes of law and accordingly, we set aside the impugned orders passed by Ld. CIT(A) and restore the matter to the file of AO for considering the eligibility of the assessee for FTC.
