Case Law Details
Naga Siva Kumar Kondri Vs ITO (ITAT Visakhapatnam)
Foreign Tax Credit allowable as assessee has filed the return of income and the statement in Form-67 within the respective due dates as extended by the Ministry of Finance, Government of India.
dmittedly, the foreign tax credit is claimed by the assessee by filing the statement in Form-67 on 31/3/2021. We find that as argued by the Ld. AR, THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 allows any statement to be filed on or before 31/3/2021. Further, the Ld. AR also demonstrated that the assessee is subjected to audit U/ s. 44AB of the Act since the assessee is engaged in the business of trading in Futures & Options and has claimed a loss during the impugned assessment year. We therefore find that as per Sl.No.4(b) of the Press Release for extension of time limits dated 30/12/2020, the period has been extended for filing the return of income upto 15/2/2021. We therefore find that the assessee has rightly filed the return of income on or before the due date for filing the return of income and also the statement in Form-67 within the extended due date of 31/3/2021. In the case Muralikrishna Vaddi (supra) relied on by the Ld. DR the facts are distinguishable inasmuch as in that case Form 67 was filed after commencement of scrutiny proceedings by the Ld. AO and after a delay of more than 2 years. However, in the present case the assessee has filed the return of income and the statement in Form-67 within the respective due dates as extended by the Ministry of Finance, Government of India. We are therefore of the considered view that the foreign tax credit of Rs. 17,55,145/ – shall be allowed to the assessee.
FULL TEXT OF THE ORDER OF ITAT VISAKHAPATNAM
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-10, Hyderabad [Ld. CIT(A)] vide DIN & Order No. ITBA/ APL/ S/ 250/ 2022-23/ 1044862537(1), dated 23/ 08/ 2022 arising out of the order passed U/s. 143(1) of the Income Tax Act, 1961 [the Act] dated 24/ 12/ 2021 for the AY 2020-21.
2. Brief facts of the case are that the assessee is an having residential status of Resident and Ordinarily Resident, filed his return of income on 31/3/ 2021 admitting a total income of Rs. 83,77,420/ -for the AY 2020-21 and also claimed a foreign tax credit of Rs. 17,55,145/-. The return of income was summarily processed by CPC which denied the foreign tax credit as claimed by the assessee. Aggrieved by the order of the CPC, the assessee filed an appeal before the Ld. CIT(A), Hyderabad. The Ld. CIT (A) considering the provisions of Rule 128(1) of the Income Tax Rules, 1962, dismissed the appeal of the assessee stating that the assessee has not filed a statement in Form-67 on or before the due date specified for filing the return of income u/s. 139(1) of the Act. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.
3. At the outset, the Ld. AR argued that the assessee filed its original return of income on 15/2/2021 which is the extended due date allowed by the Central Board of Direct Taxes [CBDT] due to Covid-19. The Ld. AR further submitted that statement in Form-67 was filed on 31/ 3/ 2021. The Ld. AR relied on THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 and invited our attention to Clause-3(1 )(b) which is stated as below:
“(b) filing of any appeal, reply or application or furnishing of any report, document, return or statement or such other record, by whatever name called, under the provisions of the specified Act;”
4. The Ld. AR further submitted that Form-67 is a statement to be filed by the assessee and hence covered by the above definition. The Ld. AR also further pointed out that notwithstanding anything contained in the Specified Act, the due date for submitting any statement as defined above is extended to 31/ 3/2021. Further, the Ld. AR submitted that as per the press release dated 30/ 12/ 2020, the Ministry of Finance, in view of the challenges faced by the tax payers in meeting the Statutory and Regulatory compliance due to the outbreak of COVID-19, the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (the Ordinance) on 31/ 3/2020 which was extended vide Notification No. 88/ 2020/ F, No. 370142/35/2020-TPL upto 31/1/2021. The Ld. AR further submitted that as per Clause-(b) of Sl.No.4 of the Press Release (supra) the due date for furnishing of Income Tax returns for AY 2020-21 covered u/s. 44AB of the Act has been extended to 15/2/2021. Accordingly, the assessee has filed the return of income on 15/2/2021 and filed the statement of Form-67 on 31/3/2021. The Ld. AR therefore pleaded that the assessee has complied with the extended due date and hence the claim of foreign tax credit shall be allowed to the assessee. Per contra, the Ld. DR relied on the order of the Jurisdictional Tribunal in ITA No. 269/Viz/2021 (AY: 2018-19), dated 14/ 06/ 2022 in the case of Muralikrishna Vaddi vs. ACIT/ DCIT. The Ld. DR submitted that since Rule 128 of the IT Rules, 1962 specifies “shall”, the Form-67 ought to have been filed within the due date specified U/s. 139(1) of the Act. Contending the above, the Ld. AR submitted that the assessee has filed his return of income within the extended due date and has filed the statement in Form-67 within the extended due dates and hence the argument of the Ld. DR is not in accordance with the extended provisions applicable to the assessee during the COVID Pandemic.
3. We have heard both the parties and perused the materials available on record as well as the orders of the Ld. Revenue Authorities. Admittedly, the foreign tax credit is claimed by the assessee by filing the statement in Form-67 on 31/3/2021. We find that as argued by the Ld. AR, THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 allows any statement to be filed on or before 31/3/2021. Further, the Ld. AR also demonstrated that the assessee is subjected to audit U/ s. 44AB of the Act since the assessee is engaged in the business of trading in Futures & Options and has claimed a loss during the impugned assessment year. We therefore find that as per Sl.No.4(b) of the Press Release for extension of time limits dated 30/12/2020, the period has been extended for filing the return of income upto 15/2/2021. We therefore find that the assessee has rightly filed the return of income on or before the due date for filing the return of income and also the statement in Form-67 within the extended due date of 31/3/2021. In the case Muralikrishna Vaddi (supra) relied on by the Ld. DR the facts are distinguishable inasmuch as in that case Form 67 was filed after commencement of scrutiny proceedings by the Ld. AO and after a delay of more than 2 years. However, in the present case the assessee has filed the return of income and the statement in Form-67 within the respective due dates as extended by the Ministry of Finance, Government of India. We are therefore of the considered view that the foreign tax credit of Rs. 17,55,145/ – shall be allowed to the assessee. The Ld. AO is directed to give the credit to the foreign tax credit as claimed by the assessee after verifying the correctness of the claim made by the assessee. It is ordered accordingly.
6. In the result, appeal filed by the assessee is allowed.
Pronounced in the open Court on the 29th March, 2023.
