Shri Anmol Avinash Mahajan, Nashik V. Assistant Director of Income-Tax, CPC, Bangalore

ITA 627/PUN/2022

AI Insights

The case involves Shri Anmol Avinash Mahajan, an individual earning income under the head 'Salaries', who appealed against the order of the National Faceless Appeal Centre (NFAC), which had rejected his claim for a foreign tax credit. The appellant had filed Form No.67, necessary for claiming the foreign tax credit, after the due date for filing the income tax return for the assessment year 2018-19. The Central Processing Centre (CPC), Bangalore, initially processed the return without granting the foreign tax credit due to the late submission of Form No.67. The NFAC upheld this decision, leading to the current appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137164 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: A
• Next Hearing Date: 18-07-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 16-08-2022
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.627/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Shri Anmol Avinash Mahajan, Flat No.10, Arya Enclave, Ashoka Marg, Nashik- 422011. PAN : AYJPM3596L Vs. ADIT, CPC, Bangalore. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 18.05.2022 for the assessment year 2018-19. 2. Briefly, the facts of the case are that the appellant is an individual deriving income under the head “Salaries”. The appellant had filed the Return of Income for the assessment year 2018-19 on 29.08.2018 disclosing total income of Rs.27,25,040/-. Assessee by : Shri Sanket M. Joshi Revenue by : Shri Ramnath P. Murkunde Date of hearing : 19.07.2023 Date of pronouncement : 31.07.2023 ITA No.627/PUN/2022 2 The said return of income was processed by the CPC, Bangalore u/s 143(1) of the Income Tax Act, 1961 (‘the Act’) accepting the returned income vide Intimation dated 28.02.2019. However, the CPC had not granted the credit for foreign tax of Rs.2,74,729/- on the ground that the appellant had filed Form No.67 as required under the provisions of Rule 128(9) of the Income Tax Rules, 1962 (‘the Rules’) on 11.11.2019 i.e. beyond the due date for filing the return of income i.e. 31.08.2018. Even rectification filed by the assessee came to be rejected. Then, the assessee had filed an appeal before the NFAC placing reliance on the several judicial precedents. However, the NFAC had rejected the claim of the assessee by holding that since filing of the Form No.67 within the due date for filing of the return of income is mandatory. 3. Being aggrieved, the appellant is in appeal before us in the present appeal. 4. We had carefully gone through the submissions made before the NFAC and find that the Form No.67 was filed on 11.11.2019 i.e. beyond the due date of processing of return of income. Therefore, this would show that on the date of processing of return of income by CPC, no Form No.67 was available with the CPC for granting the credit for foreign taxes. However, the contention of the ITA No.627/PUN/2022 3 appellant that the notice as envisaged under the proviso to the provisions of section 143(1) was not given about the proposed adjustments merit consideration and this fact was not disputed by the ld. Sr. DR. In the circumstances, we relegate the matter to the file of the Assessing Officer/CPC to the stage of issue of intimation about the proposed adjustment and then proceed to process the Return of Income u/s 143(1) of the Act. Thus, the appeal filed by the assessee stands partly allowed. 5. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 31 st day of July, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 31 st July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.