Vijayaraghavan Sundararaman Vs ITO (ITAT Bangalore)
Form 67 filed in time – yet two CIT(A)s couldn’t agree!- ITAT steps in to restore foreign tax peace- ITAT Bangalore directs AO to grant Foreign Tax Credit – Conflicting CIT(A) orders resolved in favour of Assessee
Assessee, an individual, filed return for AY 2022-23 claiming foreign tax credit (FTC) of ₹54,093 u/s 90A in respect of tax paid in the UK. CPC while processing the return u/s 143(1) denied the claim. A rectification petition u/s 154 was also rejected on the same ground. Two separate appeals were thereafter filed before CIT(A): one against the intimation u/s 143(1) & another against the rectification order.
Interestingly, two different orders emerged – one CIT(A) (Mumbai) vide order dated 17.12.2024 allowed the claim & directed AO to grant FTC u/s 90 in view of DTAA provisions, whereas another CIT(A) vide order dated 22.07.2025 dismissed the appeal against rectification order holding that Form 67 was not filed within the due date prescribed u/s 90 r.w. Rule 128.
Before Tribunal, Assessee produced evidence that Form 67 was filed before the end of the relevant assessment year & relied on amended Rule 128(9) (Notification dated 18.08.2022) which allows filing Form 67 up to the end of the assessment year. It was further urged that once the first CIT(A) had allowed the FTC, a second CIT(A) could not have reversed that benefit for the same AY on the same issue.
