Saurabh Gaur, Pune V. DCIT Circle-12, Pune

ITA 794/PUN/2022

AI Insights

The case involves Saurabh Gaur, an individual earning income under the head 'salary' from both the USA and India, who appealed against the order of the National Faceless Appeal Centre (NFAC), which confirmed the denial of credit for foreign tax paid by the CPC, Bangalore. The denial was based on the late filing of Form No.67, which was submitted after the due date for filing the return of income. The Tribunal examined whether the CPC's action in denying the tax credit was justified and concluded that the late filing of Form No.67, being merely directory, should not preclude the assessee from receiving the tax credit.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137454 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 18-01-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 03-11-2022
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 143(1); 139(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं. / ITA No.794/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 Saurabh Gaur, 2S-215 Tower-15, Cybercity, Magarpatta City, Hadapsar, Pune- 411013. PAN : AJHPG1694E Vs. DCIT, Circle-12, Pune. Appellant Respondent आदेश / ORDER PER BENCH : This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘the NFAC’] dated 12.09.2022 for the assessment year 2020-21. 2. Briefly, the facts of the case are that the appellant is an individual deriving income under the head “salary” from USA as well as India. Originally, the Return of Income for the assessment year 2020-21 was filed on 21.12.2020 and the same was revised on 29.03.2021 disclosing total income of Rs.49,02,953/- after claiming credit for foreign tax paid. However, the Form No.67 was filed by Assessee by : Shri Kishor Phadke Revenue by : Shri M. G. Jasnani Date of hearing : 19.01.2023 Date of pronouncement : 01.02.2023 ITA No.794/PUN/2022 2 the appellant on 26.03.2021. The CPC, Bangalore, vide Intimation dated 31.05.2022 denied the claim for credit of TDS, as Form No.67 was not filed within prescribed time. 3. Being aggrieved by the above Intimation, an appeal was filed before the NFAC, who vide impugned order had confirmed the action of the CPC, Bangalore denying the claim of credit for foreign tax paid, as the Form No.67 was filed belatedly beyond the due date for filing of the return of income. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. It is submitted that filing of Form No.67 within the due date for filing of the return of income is not mandatory, but it is mere a directory under the provisions of the Income Tax Rules, 1962. He further submitted that as on date of processing the return of income, a Form No.67 was uploaded, which the CPC, Bangalore had failed to take into consideration. Thus, he submitted that Intimation may be amended. He further submitted that a direction be issued to the CPC, Bangalore to give credit for foreign tax paid. 6. On the other hand, ld. Sr. DR submits that CPC, Bangalore justified in denying the credit for foreign tax paid, as the assessee ITA No.794/PUN/2022 3 had not filed Form No.67 as per amended provisions of the I. T. Rules. 7. We heard the rival submissions and perused the material on record. The issue in the present appeal is that whether or not the CPC, Bangalore is justified in denying the credit for foreign tax paid for the reason that the Form No.67 was not filed within the due date for filing of the return of income as specified under the provisions of section 139(1) of the Income Tax Act, 1961 (‘the Act’). Admittedly, in the present case, Form No.67 was not filed within the due date for filing of the return of income under the provisions of section 139(1), but Form No.67 was filed on 26.03.2021 and subsequently, the return of income was revised on 29.03.2021. The CPC, Bangalore had processed the return of income on 31.05.2022 which means that Form No.67 was very much available with the CPC, Bangalore. Therefore, the CPC, Bangalore cannot deny the claim for credit for foreign tax paid merely because Form No.67 was not filed within the due date specified for filing the return of income under the provisions of section 139(1) of the Act, as it is merely a directory. Therefore, we direct the CPC, Bangalore to amend the Intimation u/s 143(1) of the Act for taking into ITA No.794/PUN/2022 4 consideration the Form No.67 filed by the appellant. Accordingly, the ground of appeal filed by the assessee stands partly allowed. 8. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 01 st day of February, 2023. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 01 st February, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The NFAC, Delhi. 4. The Pr. CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.