Rahul Singhal Vs DCIT (ITAT Delhi)
Core Issue: The core issue before the Tribunal was whether delayed filing of Form No. 67 under Rule 128(9) of the Income-tax Rules could defeat the assessee’s substantive claim for Foreign Tax Credit under sections 90/90A/91 read with applicable DTAAs, when such form was admittedly filed before completion of assessment proceedings.
Facts of the Case: The assessee filed appeals for AYs 2017-18 and 2018-19 challenging denial of Foreign Tax Credit (FTC) and other additions. The appeals before the Tribunal were delayed by about 198/205 days owing to severe medical complications involving lumbar spine instability and major spinal surgery. The Tribunal condoned the delay after accepting the medical evidence and affidavit explaining inability to pursue litigation within limitation period.
For AY 2017-18, the Assessing Officer denied FTC of ₹42,19,483 claimed under sections 90/91. In addition, disallowance under section 37 amounting to ₹23,42,810 and disallowance under section 40(a)(ia) amounting to ₹40,29,978 were also made.
For AY 2018-19, FTC amounting to ₹25,64,005 under sections 90/90A was denied. The CIT(A) upheld denial primarily on the ground that details of exports and tax credit relating to various foreign countries were not adequately furnished and it was unclear whether DTAA existed with those countries.
