CES Limited Vs DCIT (ITAT Hyderabad)
The Income Tax Appellate Tribunal (ITAT), Hyderabad, allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), relating to Assessment Year 2020-21. The dispute concerned the disallowance of Foreign Tax Credit (FTC) of ₹64,39,196 claimed under Section 90 of the Income-tax Act on the ground that Form No. 67 had not been filed within the due date prescribed under Section 139(1).
The assessee, a company engaged in the business of Information Technology and Information Technology-enabled services, filed its original return under Section 139(1) on 2 February 2021 declaring total income of ₹10,51,37,110 and claiming a refund of ₹4,65,570. A revised return was filed under Section 139(5) on 26 March 2021 declaring the same total income but claiming a refund of ₹69,04,760. Subsequently, the assessee filed a rectified return under Section 154 on 25 April 2022 to rectify an inconsistency relating to expenditure claimed under Section 37(1). The Central Processing Centre (CPC) processed the rectified return and passed an order under Section 154 on 3 June 2022 determining the total income at ₹10,51,37,120. While issuing a refund of ₹4,55,560, the CPC disallowed the foreign tax credit claimed under Section 90 amounting to ₹64,39,196 and also considered fees under Section 234F at ₹10,000.
