KALYANASUNDARAM RAMASUBRAMANYAM,CHENNAI V. INCOME TAX OFFICER, CHENNAI

ITA 3322/CHNY/2024

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The case involves Kalyanasundaram Ramasubramanyam, the appellant, contesting the denial of a Foreign Tax Credit (FTC) of Rs.1,48,670 by the Income Tax Officer, Non Corporate Circle 19(1), Chennai. The FTC was initially denied because the requisite Form No.67 was not filed along with the original return of income by the due date. The assessee filed the form belatedly, which led to the denial of the credit by the Central Processing Centre (CPC), Bengaluru, and was upheld by the Commissioner of Income Tax (Appeals). The Tribunal's decision to allow the appeal was based on the interpretation that the filing of Form No.67 is directory, not mandatory, as per the cited precedents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472393 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2021-2022
• Other Referred Cases: ITO vs. Smt. Chengam Durga, Duraiswamy Kumaraswamy
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V. ASWATHY
• Assessee Lawyers: RANGANATHAN RAMESH
• Section: 143(1)

Judgement Text

" आयकर अपीलीय अिधकरण ‘सी’ Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ एवं माननीय ŵी मनु क ुमार िगįर, Ɋाियक सद˟ क े समƗ। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER AND HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER आयकरअपील सं./ ITA No.3322/Chny/2024 (िनधाŊरणवषŊ / Assessment Year: 2021-2022) Kalyanasundaram Ramasubramanyam, No.8, Bharathiyar Colony, Ashok Nagar, Chennai 600 083. [PAN: ALJPR 0736Q] Vs. The Income Tax Officer, Non Corporate Circle 19(1) Chennai. (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) अपीलाथȸ कȧ ओर से/ Appellant by : Shri Ranganathan Ramesh, C.A., Ĥ×यथȸ कȧ ओर से /Respondent by : Ms. V. Aswathy, JCIT सुनवाई कȧ तारȣख/Date of Hearing : 25.02.2025 घोषणा कȧ तारȣख /Date of Pronouncement : 25.03.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income The captioned appeal filed by the assesseeinvolves an issue i.e., allowance of foreign tax credit (FTC). The appeal for AY 2021-22 arises out of an order passed by Learned Addl. /Joint Commissioner of Income Tax (Appeals)-8, Mumbai, [CIT(A)] on 28-10-2024 in the matter of an intimation issued by CPC, Bengaluru u/s 143(1) on 05-07-2022 denying Foreign Tax Credit of Rs.1,48,670/- as claimed by the assessee u/s 90. The same was denied for want of filing of requisite Form 67 along with return of income. 2 ITA No.3322/Chny/2024 2. It emerges that the assessee filed original return of income on 30/11/2021 but it did not claim FTC of Rs.1,48,670/-. The assessee filed Form No. 67 on 25/07/2022 after due date of return which was 31.07.2021. The ITR was processed by CPC and credit was not allowed since Form No.67 was filed belatedly. The Ld. CIT(A) confirmed the action of CPC since this claim was not made in the original return of income. As per Rule 128(9), this form was required to be furnished along with return of income u/s 139(1). Aggrieved, the assessee is in further appeal before us. 3. We find that the issue of foreign tax credit is covered in assessee’s favor by the decision of this Tribunal in the case of ITO vs. Smt. Chengam Durga (ITA No.1491/Chny/2023 dated 08-04-2024). The bench, considering the decision of Hon’ble High Court of Madras in the case of Duraiswamy Kumaraswamy (WP No.5834 of 2022 &ors. order dated 06.10.2023), held that filing of this form in terms of Rule 128 was only directory in nature. The rule is only for the implementation of the provisions of the act and it would always be directory in nature. Respectfully following the same, we direct Ld. CIT(A) to grant impugned Foreign Tax Credit to the assessee after verifying Form No.67. 4. In result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced on 25th day of March, 2025 at Chennai. Sd/- Sd/- (मनोज क ुमार अŤवाल) (मनु क ुमार िगįर) (MANOJ KUMAR AGGARWAL) लेखा सद˟ / ACCOUNTANT MEMBER (MANU KUMAR GIRI) Ɋाियक सद˟ / JUDICIAL MEMBER चेɄई Chennai: िदनांक Dated :25-03-2025 KV आदेश कȧ ĤǓतͧलͪप अĒेͪषत /Copy to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT, Chennai. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "