Vipul Vasant Patil Vs ADIT (ITAT Mumbai)
In the case Vipul Vasant Patil Vs ADIT (ITAT Mumbai), the Income Tax Appellate Tribunal (ITAT) addressed several appeals related to the denial of foreign tax credit (FTC) under Section 90 of the Income Tax Act for the assessment year 2018-19. The appellant, Vipul Vasant Patil, a resident individual, had earned income from salary and other sources, including salary from Unilever Ltd. in Singapore. Initially, he filed his income tax return on July 16, 2018, without claiming the FTC. Subsequently, he filed a revised return on March 28, 2019, claiming FTC of ₹3,33,695, which was subject to tax both in India and Singapore. However, the Assessing Officer (AO) and the Commissioner of Income-tax (Appeals) (CIT(A)) denied the credit on the grounds that the Form No. 67, required to claim FTC, was not filed within the due date specified under the Income Tax Rules.
The tribunal examined the denial of FTC in light of prior judicial precedents, including a relevant decision from the Madras High Court, which held that the requirement for submitting Form No. 67 is directory and not mandatory, provided it is filed before the completion of the assessment. The ITAT found that Patil had filed the required form with his revised return well before the processing of his return by the Centralized Processing Centre (CPC). Therefore, the tribunal remanded the issue back to the AO, instructing them to grant the FTC after verifying the claim, as the appellant complied with the necessary requirements by filing the form timely.
