Swaroopa Simhadri, Ranga Reddy V. ITO, Ward-8(3), Hyderabad

ITA 85/Hyd/2023

AI Insights

The case involves Swaroopa Simhadri, a US citizen who became a resident of India for tax purposes after staying in India for more than 182 days during the assessment year 2019-20. She filed her income tax return and Form No. 67, claiming a Foreign Tax Credit (FTC) under section 90 of the Income Tax Act, 1961. However, the Centralized Processing Center (CPC) in Bengaluru did not consider her FTC claim and raised a tax demand. The Commissioner of Income Tax (Appeals) upheld this decision, leading to the appeal before the Income Tax Appellate Tribunal. The Tribunal, after considering the extensions provided by the CBDT for filing the return, ruled in favor of the assessee, allowing her FTC claim.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133408 (ITAT-HYDERABAD)
• Duration Of Justice: 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-02-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 29-01-2023
• Laws Referred To: Income Tax Act, 1961, Income Tax Rules, 1962
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 90; 139

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “SMC”, HYDERABAD BEFORE SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 85/Hyd/2023 (निर्धारण वर्ा / Assessment Year: 2019-20) Swaroopa Simhadri, Serilingampally, Ranga Reddy [PAN No. GFVPS8655R] Vs. Income Tax Officer, Ward-8(3), Hyderabad अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती‍द्वधरध/Assessee by: Shri Mohd. Afzal, AR रधजस्‍व‍द्वधरध/Revenue by: Shri B. Sunil Kumar, DR स ु िवधई‍की‍तधरीख/Date of hearing: 27/02/2023 घोर्णध की‍तधरीख/Pronouncement on: 28/02/2023 आदेश / ORDER Aggrieved by the order dated 30/11/2022 passed by the learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of one Swaroopa Simhadri (“the assessee”) for the assessment year 2019-20, assessee preferred this appeal. 2. Grievance of the assessee in this matter is that while processing the return of income for the assessment year 2019-20, the CPC, Bengaluru did not consider the Foreign Tax Credit (FTC) under section 90 of the Income Tax Act, 1961 (‘the Act’) and raised the demand. Though the assessee happens to be a citizen of US, she came to India for business purpose for ITA No. 85/Hyd/2023 Page 2 of 4 more than 182 days, thereby becoming a resident in India and in that capacity, she offered all the incomes from India and abroad and paid the taxes. 3. According to the Revenue, the due date for filing the return of income and Form No. 67 in respect of the assessment year 2019-20 was 31/08/2019 whereas the assessee filed the return of income and form No. 67 on 27/07/2020. Learned CIT(A) also recorded that in terms of Rule 128(9) of the Income Tax Rules, 1962 (‘the Rules’), such an FTC cannot be allowed to the assessee. 4. Learned AR submitted that it is a fact that the assessee filed the return of income on 27/07/2020 whereas originally, the due date for furnishing the return of income for the assessment year 2019-20 under section 139 of the Act was 31/08/2019, but vide notification No. 35/2020/F.No. 370142/23/2020-TPL, dated 24/06/2020, the CBDT extended such period upto 31/07/2020 and it was further extended vide notification No. 56/2020/F.No. 370142/23/2020-TPL, dated 29/07/2020, till 30/09/2020. 5. Learned DR does not dispute these two notifications. 6. Having gone through the record in the light of these two notifications, I am satisfied that whereas the due date for furnishing the return of income for the assessment year 2019-20 stood extended till 30/09/2020, the assessee filed her return of income on 27/07/2020 alongwith Form No. 67 and thereby there is sufficient compliance with the requirement of Rule 128(9) of the Rules. However, these two notifications missed the attention of the learned CIT(A), when the impugned order was passed. 7. In these circumstances, I hold that there is no violation of the requirements of Rule 128(9) of the Rules and the assessee is entitled to ITA No. 85/Hyd/2023 Page 3 of 4 claim the FTC. Learned Assessing Officer is directed to consider the same and grant relief. 8. In the result, appeal of the assessee is allowed. Order pronounced in the open court on this the 28 th day of February, 2023. Sd/- (K. NARASIMHA CHARY) JUDICIAL MEMBER Hyderabad, Dated: 28/02/2023 TNMM ITA No. 85/Hyd/2023 Page 4 of 4 Copy forwarded to: 1. Swaroopa Simhadri, C/o. Md. Afzal, Advocate, # 402, Sherson’s Residency, 11-5-465, Criminal Court Road, Red Hills, Hyderabad. 2. Income Tax Officer, Ward-8(3), Hyderabad. 3. DR, ITAT, Hyderabad. 4. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD