Prashant Kurani, Mumbai V. The Assistant Director of Income Tax, Bengaluru

ITA 2967/MUM/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 4065 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 26-12-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 23-08-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Salary income; Revised return
• Section: 154; 143(1); 139(1)

Judgement Text

आयकर अपीलीय अिधकरण मुंबई पीठ “सी”, मुंबई ी ि क स अ ी, ियक स ं ी यल, ल ! क र स क सम" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C”, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI GAGAN GOYAL, ACCOUNTANT MEMBER आ.अ.सं.2967/मुं/2023 (ि . . 2020-21) ITA No.2967/MUM/2023 (A.Y.2020-21) Prashant Kurani A5-1001. A4, Castle Mill Compound, Thane - 400601 PAN: AAAPK8762F ...... अपील # /Appellant ब म Vs. The Assistant Director of Income Tax, Centralised Processing Center, Income Tax Department, Bengaluru, Karnataka – 560500 ..... $ि% ी/Respondent Assessee by : Shri Ninad Patade Revenue by : Shri H.M. Bhatt सु ई की ि%ि / Date of hearing : 27.12.2023 घ षण की ि%ि / Date of pronouncement : 31.01.2024 आ श/ ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-57, Mumbai (in short ‘ the CIT(A)’), dated 30.6.2023, for the Assessment Year 2020-21. 2 ITA No. 2967/MUM/2023 (A.Y 2020-21.) Prashant Kurani Vs. The Assistant Director of Income Tax 2. Shri Ninad Patade appearing on behalf of the assessee submitted that the assessee is a salaried employee. During the period relevant to assessment year under appeal, the assessee had served in China. The assessee received salary in China and had also paid tax thereon. The assessee filed his original return of income on 30.12.2020. The assessee in order to claim foreign tax credit furnished Form No.67 on 27.3.2021. While filing the original return of income, the assessee inadvertently failed to disclose salary income received in China. The assessee filed revised return of income on 29.3.2021 including salary income received in China. The revised return of the assessee was processed u/s 143(1) of the Income Tax Act, 1961 (in short ‘the Act’) vide intimation dated 15.12.2021. While processing the assessment, the Revenue failed to give Foreign Tax Credit. The assessee filed rectification petition u/s154 of the Act with a request to allow credit of foreign tax paid. The same was rejected by the CPC vide order dated 3.8.2022. 2.2 Aggrieved against the order dated 3.8.2022 passed u/s 154 of the Act, the assessee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee solely on the grounds that Form No.67 filed by the assessee was not in accordance with Rule 128 of the Income Tax Rules, 1962 (in short ‘the Rules). As per the Rules, the assessee was required to file Form No.67 to claim foreign tax credit, on or before the due date for filing return of income u/s. 139(1) of the Act. 3. The Learned Authorised Representative of the assessee (in short ‘ the Ld. AR’) submitted that the assessee has furnished Form No.67 to claim Foreign Tax Credit before filing revised return of income disclosing salary income received in China. The Ld. AR has placed reliance on the decision of the Tribunal in the case of Yogesh Dnyandeo Kinage Vs Assistant Director of Income Tax, CPC in ITA No.1478/Mum/2023 for the assessment year 2018- 19, decided on 10.8.2023, wherein on similar facts, the assessee had furnished Form No.67 after the elapse of the due date for filing of return of income u/s. 143(1) of the Act. The Tribunal directed the Assessing Officer to 3 ITA No. 2967/MUM/2023 (A.Y 2020-21.) Prashant Kurani Vs. The Assistant Director of Income Tax grant foreign tax credit to the assessee on the basis of Form No.67 furnished by the assessee after due verification. 4. Per contra, Shri H. M. Bhatt, representative of the Department (in short ‘the Ld. DR’) vehemently defended the impugned order. The Ld. DR submitted that as per Rule 128, the assessee was required to furnish Form No.67 on or before the due date for filing of return of income u/s. 139(1) of the Act. The assessee has failed to comply the same, hence, the CIT(A) has rightly dismissed the appeal of assessee. The Ld. DR prayed for upholding the impugned order and dismissing appeal of the assessee. 5. We have heard the submissions made by rival sides and have examined the orders of authorities below. The short issue in appeal before us is that form No.67 furnished by the assessee was not considered for grant of Foreign Tax Credit on the ground that it was filed belated. Rule 128(9) of the Income Tax Rules, 1962 mandates to furnish form No.67 before the due date specified for furnishing return of income under section 139(1) of the Act. The assessee furnished Form No.67 after the said due date but before filing revised return of income. The defect in filing Form no.67 after the due date as specified under section 139(1) is merely a procedural defect and hence rectifiable. Our this views is supported by the decision in the case of Sonakshi Sinha Vs. Commissioner of Income Tax (Appeals) [142 taxmann.com 414, Mumbai. Trib]. The said decision has been followed by the coordinate bench in the case of Yogesh Dnyandeo Kinage (supra). 6. Taking into consideration the facts of the case and the decisions referred above, we deem it appropriate to restore this issue to the file of AO to consider Form No.67 and allow the benefit of Foreign Tax Credit to the assessee, in accordance with law. 4 ITA No. 2967/MUM/2023 (A.Y 2020-21.) Prashant Kurani Vs. The Assistant Director of Income Tax 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on Wednesday the 31 st day of January 2024. Sd/- Sd/- (SHRI GAGAN GOYAL) (VIKAS AWASTHY) ल ! क र स / ACCOUNTANT MEMBER ियक स /JUDICIAL MEMBER मुंबई/ Mumbai, ि ंक/Dated: 31.01.2024 Mini, Sr. PS $ि%िलिप अ* िष%Copy of the Order forwarded to : 1. अपील #/The Appellant , 2. $ि% ी/ The Respondent. 3. The PCIT 4. ि भ ीय $ि%ि िध,आय.अपी.अिध.,मुबंई/DR, ITAT, Mumbai 5. ,- फ इल/Guard file. BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai