PRAPHAPANANEE SEKARBABU VIGNESH,CHENNAI V. ITO, NCW-10(3), CHENNAI

ITA 2496/CHNY/2025

AI Insights

The case involves Praphapananee Sekarbabu Vignesh, the appellant, who contested the denial of a Foreign Tax Credit claimed under sections 90 and 90A of the Income Tax Act for the Assessment Year 2022-23. The credit was initially denied by the AO due to the late submission of Form 67, which was filed on 30.09.2022, past the due date of 31.07.2022. The appellant argued that the delay should not disqualify the claim, citing a precedent from the Madras High Court. The Tribunal, referencing similar cases and the High Court's decision, ruled in favor of the appellant, emphasizing that the procedural requirement for filing Form 67 is directory and not mandatory.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833494 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2022-2023
• Appeal Filed On: 10-09-2025
• Other Referred Cases: Duraiswamy Kumaraswamy Vs. PCIT-8 Chennai, ITO vs. Smt. Chengam Durga, Amit Singh Baid Mehta vs ADIT, CPC
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM; J. C.I.T
• Assessee Lawyers: SURAJ NAHAR

Judgement Text

" आयकर अपील य अ धकरण, ‘बी’ \u000eयायपीठ, चे\u000eनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI \u0015ी जॉज\u0018 जॉज\u0018 क े, उपा\u001aय\u001b एवं \u0015ी एस.आर.रघुनाथा, लेखा सद%य क े सम\u001b BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.:2496/Chny/2025 'नधा\u0018रण वष\u0018 / Assessment Year: 2022-23 Praphapananee Sekarbabu Vignesh, 7, Chellappa Street, Otteri, Chennai – 600 012. vs. ITO, Non-Corporate Ward -10(3), Chennai. [PAN: AWEPV-3963-H] (अपीलाथ)/Appellant) (*+यथ)/Respondent) अपीलाथ) क, ओर से/Appellant by : Shri. Suraj Nahar, C.A. *+यथ) क, ओर से/Respondent by : Ms. Gouthami Manivasagam, J.C.I.T. सुनवाई क, तार ख/Date of Hearing : 18.11.2025 घोषणा क, तार ख/Date of Pronouncement : 02.02.2026 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : Aforesaid appeal by assessee for Assessment Year (AY) 2022-23 arises out of the order of learned Commissioner of Income Tax (Appeals), ADDL/JCIT (A)-5 Mumbai [‘CIT(A)’ in short] dated 12.08.2025 in the matter of intimation order u/s.154 r.w.s 143(1) of the Act passed on 15.06.2023 denying Foreign Tax Credit of Rs.4,93,235/- as claimed by the assessee u/s 90/90A of the Act. The same was denied for delay in filing of requisite Form 67 along with return of income. 2. The assessee has filed Form 67 beyond due date i.e. 31.07.2022 prescribed u/s.139(1) of the Act. Form 67 was filed by the assessee on 30.09.2022 after the due date. The AO denied the claim of Foreign Tax Credit for the reason that the assessee has failed to submit the Form 67 within the due date prescribed u/s.139(1) of the Act. However, Ld. AR relied on the decision of the Hon’ble Madras High Court’s judgement Printed from counselvise.com :-2-: ITA. No:2496/Chny/2025 in the case of Duraiswamy Kumaraswamy Vs. PCIT-8 Chennai (W.P.No.5834 of 2022 and W.M.P.Nos.5925 and W.M.P. Nos.5925 and 5927 of 2022) prayed for allowing the Foreign Tax Credit denied by the AO. 3. Per contra, the ld.DR relied upon the impugned order of the ld.CIT(A). 4. We find that this issue has been decided in assessee’s favour by this Tribunal in the case of (i) ITO vs. Smt. Chengam Durga (ITA No.1491/Chny/2023 dated 08-04 2024) (ii) Amit Singh Baid Mehta vs ADIT, CPC in ITA No. 265 & 266/Chny/2023 dated 28.06.2013 and 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 the AO to verify and grant impugned Foreign Tax Credit of Rs.4,93,235/- to the assessee. 5. In the result, the appeal of the assessee stands allowed. Order pronounced in the court on 02nd February, 2026 at Chennai. Sd/- Sd/- (जॉज\u0018 जॉज\u0018 क े) (GEORGE GEORGE K) उपा\u001aय\u001b /VICE PRESIDENT (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) लेखा सद%य/ACCOUNTANT MEMBER चे\u000eनई/Chennai, 0दनांक/Dated, the 02nd February, 2026 SP आदेश क, *'त2ल3प अ4े3षत/Copy to: 1. अपीलाथ)/Appellant 2. *+यथ)/Respondent 3.आयकर आयु5त/CIT– Chennai/Coimbatore/Madurai/Salem 4. 3वभागीय *'त'न ध/DR 5. गाड\u0018 फाईल/GF Printed from counselvise.com "