DCIT Vs Malvinder Mohan Singh (ITAT Delhi)
Sufficient returned income & timely Form 67 can’t be ignored: ITAT upholds deletion of foreign investment addition & allows FTC u/s 90/91
Delhi ITAT dismissed Revenue’s appeal & upheld CIT(A)’s order deleting addition of ₹3.31 crore u/s 69 on account of alleged unexplained foreign investment in shares held in names of minor daughters & allowing foreign tax credit of ₹23.02 lakh u/s 90/91.
Tribunal noted that Assessee was a high-income taxpayer with returned income of ₹26.80 crore, had duly disclosed foreign investments in Schedule FA, furnished Indian & overseas bank details, & possessed sufficient sources to make such investments, leaving no scope for adverse inference merely for want of further documentation.
On FTC, Tribunal held that Form 67 was filed well within the time permitted u/s 139(4) along with revised return, & details of foreign income & taxes paid were duly reported in return schedules. Non-filing of Form 67 before due date u/s 139(1) was held not fatal in such facts, & double taxation relief could not be denied. Revenue appeal was accordingly dismissed in entirety
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the Revenue is preferred against the order of the ld. CIT(A), Delhi dated 21.05.2024 pertaining to A.Y. 2017-18.
