Prasad Nimba Thakur, Pune V. Income Tax Officer, Ward-13(4), Pune, Pune

ITA 889/PUN/2023

AI Insights

The case involves Prasad Nimba Thakur, an individual resident in India, who earned salary income in France during the assessment year 2018-19. He claimed a foreign tax credit under section 90 of the Income Tax Act, 1961, read with the India-France Double Taxation Avoidance Agreement. His return was initially processed without granting the foreign tax credit, leading to an appeal at the NFAC, which was dismissed due to a delay in filing. The Tribunal found the delay reasonable as it was caused by the assessee pursuing an alternative remedy and related to the COVID-19 pandemic, thus setting aside the NFAC's decision and remitting the case back for a decision on merits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137659 (ITAT-PUNE)
• Duration Of Justice: 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 24-08-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 10-08-2023
• Other Referred Cases: Cognizance for Extension of Limitation, In re (2022) 441 ITR 722 (SC)
• Laws Referred To: Income Tax Act, 1961, India-France Double Taxation Avoidance Agreement
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 90; 154; 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.889/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Prasad Nimba Thakur, F-7, Satyamev Co. Hsg. Society, NDA Pashan Road, Maharashtra- 411021. PAN : AEPPT6799E Vs. ITO, Ward-13(4), Pune. 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 15.06.2023 for the assessment year 2018-19. 2. Briefly, the facts of the case are that the appellant is an individual and Resident deriving income under the head “salaries”. During the previous year relevant to the assessment year under Assessee by : None Revenue by : Smt. Sonal Sonkavde Date of hearing : 25.08.2023 Date of pronouncement : 30.08.2023 ITA No.889/PUN/2023 2 consideration, the appellant was deputed to France. The salary income earned in France for services rendered by him in France and claimed the benefit of foreign tax credit of Rs.1,19,191/- under the provisions of section 90 of the Income Tax Act, 1961 (‘the Act’) read with Article 25(1) of the India-France Double Taxation Avoidance Agreement (‘DTAA’). The said return of income was processed u/s 143(1) of the Act for the assessment year 2018-19 without granting the foreign tax credit vide Intimation dated 28.05.2020. 3. Being aggrieved, an appeal was filed before the NFAC on 24.03.2023 with the delay of 1000 days. The NFAC after excluding the period of delay attributable to the Covid-19 Pandemic covered by the decision of the Hon’ble Supreme Court in the case of Cognizance for Extension of Limitation, In re (2022) 441 ITR 722 (SC) dated 10.01.2022, wherein, the limitation prescribed by various statutes was suo motu extended on account of difficulties faced by the citizens of the country on account of Pandemic Covid-19, the delay occurred from 01.03.2022 to 24.03.2023 i.e. ITA No.889/PUN/2023 3 delay of 389 days was not condoned and dismissed the appeal in limine without entering into the merits of the issues in appeal. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 5. When the appeal was called on, none appeared on behalf of the appellant-assessee despite due service of notice of hearing. 6. On the other hand, ld. Sr. DR placing reliance on the orders of the lower authorities submits that no interference is called for. 7. I heard the ld. Sr. DR and perused the material on record. I had carefully gone through the explanation furnished by the assessee before the NFAC for delay in filing the appeal is that the assessee was pursuing the alternative remedy having recourse to the provisions of section 154 against the intimation. It is well settled position of law that the delay occurred on account of pursuing alternative remedy constitutes a reasonable cause for not filing the appeal in time. In the circumstances, I am of the considered opinion that the NFAC was not justified in not condoning the delay. Therefore, the order of the NFAC is hereby set-aside and remitted to ITA No.889/PUN/2023 4 the file of the NFAC to dispose of the appeal on merits in accordance with law after affording reasonable opportunity of being heard to the assessee. Thus, the grounds of appeal filed by the assessee stand partly allowed. 8. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 30 th day of August, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 30 th August, 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, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.