Prashanth Baburao Kulkarni , Bengaluru V. Income Tax Officer, Ward-2, , Gulbarga

ITA 321/BANG/2024

• Counselvise Citation: [2024] 101 COUNSELVISE.COM (IT) 6935 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-05-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 25-02-2024
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Assessee Lawyers: SHREEHARI KUTSA
• Keywords: TDS
• Section: 119(2)(b); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No.321/Bang/2024 Assessment year : 2015-16 Prashanth Baburao Kulkarni, Rep. by GPA holder Baburao Manikrao Kulkarni, A 101, Barvika Residency, Basapura Main Road, Naganathpura Junction, Bengaluru – 560 100. PAN : AJVPK 2375G Vs. The Income Tax Officer, Ward 2, Gulbarga. APPELLANT RESPONDENT Appellant by : Shri Shreehari Kutsa, Advocate Respondent by : Shri Ganesh R. Ghale, Standing Counsel. Date of hearing : 28.05.2024 Date of Pronouncement : 30.05.2024 O R D E R Per Laxmi Prasad Sahu, Accountant Member This appeal is filed by the assessee against the order dated 30.12.2023 of the Addl./Jt. CIT(Appeals)-1, Chennai, for the AY 2015-16. 2. The sole and substantive issue raised by the assessee in this appeal is regarding not grant of foreign tax credit. The brief facts of ITA No.321/Bang/2024 Page 2 of 3 the case are that the assessee filed original return of income on 12.11.2016 in which foreign tax credit of Rs.65,972 was not claimed. Later on, immediately on the same day on 12.11.2016 he filed revised return of income and claimed foreign tax credit. The CPC processed the revised return on 26.02.2018 disallowing foreign tax credit. The assessee also filed return of income u/s 119(2)(b) of the Act. vide acknowledgement No. 616540890080518 claiming foreign tax credit and it was transferred to the jurisdictional AO and still it is pending. The assessee filed Form No. 67 on 11.02.2023. During the appellate proceedings, foreign tax credit was not allowed by the CIT(Appeals) by observing that Form 67 has not been filed within the due date of filing return of income prescribed u/s. 139(1) of the Act as per Rule 128 of the I.T. Rules, 1962. Aggrieved, the assessee is in appeal before the ITAT. 3. Before us the ld. AR reiterated the submissions made before the CIT(Appeals) and has filed evidence at pages 9 to 28 of PB which is placed on record. The evidence filed before the CIT(A) are very much relevant for deciding the issue. After going through the documents, we note that in Form 16 at Sr. No. 18(a) the employer Infosys Ltd. has deducted TDS of Rs. 2,45,797 u/s 192(1) and at (e) foreign tax credit is shown of Rs.65,972. Form 67 is placed at page 14 to 15 of PB. The assessee has filed income tax return filed in US which is placed at pages 16 to 28 of PB. We note that the CIT(Appeals) has not allowed foreign tax credit for belated filing of Form 67 as per Rule 128(9), but for the impugned AY 2015-16 there was no such requirement. The ITA No.321/Bang/2024 Page 3 of 3 Rule 128 of I.T. Rules was inserted by I.T. (18 th Amendment) Rules, 2016 w.e.f. 01.04.2017 and belated filing of Form 67 does not arise in this case. Considering the totality of facts of the case, we remit this issue to the AO to allow foreign tax credit of Rs.65,972 considering section 90/90A of the Act after due verification. 4. In the result, the appeal is allowed for statistical purposes. Pronounced in the open court on this 30 th day of May, 2024. Sd/- Sd/- ( BEENA PILLAI ) (LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 30 th May, 2024. /Desai S Murthy / Copy to: 1. Appellant 2. Respondent 3. Pr.CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore.