RAJ TALREJA,UDAIPUR V. ACIT, CIRCLE-2, UDAIPUR

ITA 3419/MUM/2025

AI Insights

The case involves Raj Talreja, who appealed against the order of the CIT(A), National Faceless Appeal Centre, which sustained the disallowance of relief under sections 90/90A for foreign taxes paid. The assessee had reported income from Zambia, which was taxed there, and claimed a credit for these taxes in India. The initial return was processed without considering this claim due to the late filing of Form 67. The CIT(A) dismissed the appeal ex-parte, leading to the current appeal before the Tribunal. The Tribunal found that the first appeal was disposed of without proper consideration of the assessee's submissions and documents, necessitating a remand to the Assessing Officer for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713279 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Other Referred Cases: Sonakshi Sinha Vs. CIT, Deepak Shimoga Padmaraju Vs. ADIT, Vinodkumar Lakshmipathi Vs. CIT
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order
• Section: 154; 234B

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH MUMBAI BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 3419/MUM/2025 Assessment Year: 2020-21 Raj Talreja 101-102, Indraprastha Complex, Gurudwara, Udaipur, Rajasthan - 313001 (PAN : AAFPT7962D) Vs. Assistant Commissioner of Income Tax, Circle-2, Rajasthan (Appellant) (Respondent) Present for: Assessee : Shri Vishwas Mehendale, Advocate Revenue : Shri. Annavaram Kosuri, Sr.DR Date of Hearing : 24.07.2025 Date of Pronouncement : 31.07.2025 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide order no. ITBA/NFAC/S/250/2024-25/1068049894(1), dated 28.08.2024 passed against the rectification order by the Central Processing Centre, u/s. 154 of the Income-tax Act (hereinafter referred to as the “Act”), dated 07.11.2022 for Assessment Year 2020-21. 2. Grounds taken by the Assessee are reproduced as under: “1. That the Hon’ble CIT(A) has grossly erred in passing order u/s 250 thereby sustaining disallowance of relief u/s 90/90A by CPC merely on assumption, Printed from counselvise.com 2 ITA No.3419/MUM/2025 Raj Talreja AY 2020-21 presumptions, surmises and conjecture basis, without any evidence or document for the year under consideration 2. That under the facts and circumstances of the case, the CPC and Hon’ble CIT(A) erred in not considering relief under section 90/90A, even though Form 67 is filed, along with proof of payment made in other country 3. That under the facts and circumstances of the case, the CPC and Hon’ble CIT(A) ignored the proof of payment made in other country, which is grossly wrong and bad in law. 4. That under the facts and circumstances of the case, the Hon’ble CIT(A) erred in not giving opportunity to appellant as no notice of hearing were served on the appellant 5. That the CPC has erred in charging interest u/s 234A, 234B & 234C of the Act.” 3. The only issue raised in this appeal is in respect of foreign tax credit denied by the ld. AO u/s. 90/90A on account of delay in filing Form 67. 4. Brief facts of the case are that assessee filed his return of income reporting total income at Rs. 92,57,470/- including remuneration of Rs. 32,36,580/- earned from Tyre Technocrats Zambia Limited i.e a company in Zambia. According to the assessee, the said income was subjected to tax as per the revenue laws of Zambia where assessee held Zambian TIN-1004237099. Assessee had paid due taxes in Zambia for which a certificate of pay and tax deducted issued by the employer in Zambia is placed on record. Assessee claimed credit against the taxes paid on the foreign income which was included in his total income reported in the return filed in India. Return of income was filed on 20.03.2021. Form 67 for claiming credit of foreign taxes was filed on 18.03.2021 along with Zambian tax certificate. Return of income was processed u/s. 143(1) by CPC Bengaluru without considering the claim for tax credit against the tax paid in Zambia. Assessee moved an application for rectification of this mistake u/s. 154 which was rejected. Assessee moved another application for Printed from counselvise.com 3 ITA No.3419/MUM/2025 Raj Talreja AY 2020-21 rectification by submitting that Form 67 place on record ought to have been considered while processing the return to give credit for the foreign taxes paid by him. Assessee also moved a grievance for which the resolution provided states that the relief u/s. 90/90A is disallowed since the original return was filed after the due date u/s. 139(1). 5. Aggrieved assessee went in appeal before the ld. CIT(A) who dismissed the same by observing that assessee did not make submissions nor complied with the notices fixed for hearing, to substantiate the claim made. The order was passed ex-parte without taking into account Form 67 along with proof of payment of foreign taxes which were before the ld. AO. 6. Before us, ld. Counsel of the assessee, reiterating the above facts placed reliance on the decision of co-ordinate bench in the case of Sonakshi Sinha Vs. CIT in ITA No. 1704/Mum/2022 dated 20.09.2022, Deepak Shimoga Padmaraju Vs. ADIT in [2024] 162 taxmann.com 96 (Bangalore-Trib.) and in Vinodkumar Lakshmipathi Vs. CIT in [2022] 145 taxmann.com 235] (Bangalore-Trib.), wherein it is held that where assessee claimed foreign tax credit and filed Form no. 67 after due date specified for furnishing return u/s. 139(1), non furnishing of form before due date specified for furnishing return was not fatal to claim foreign tax credit. 7. In the present set of facts and circumstances of the case, the first appeal has been disposed off ex-parte without taking into consideration the submissions of the assessee and material placed on record. It is a case of verification of the claim made by the assessee vis-à-vis documents furnished by him. Accordingly, in the interest of justice and fair play, we find it appropriate to remit the matter back to Printed from counselvise.com 4 ITA No.3419/MUM/2025 Raj Talreja AY 2020-21 the file of jurisdictional Assessing Officer(JAO) for the limited purpose of verification of the claim vis-à-vis documents placed on record for relief claimed u/s. 90/90A towards credit for foreign taxes paid by the assessee. Ld. JAO is directed to verify and examine the claim of the assessee and allow the same in accordance with the provisions of law. Needless to say that assessee be given reasonable opportunities of being heard to make any further submission, if so required. Accordingly, grounds raised by the assessee are allowed for statistical purposes. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order is pronounced in the open court on 31 July, 2025 Sd/- Sd/- (Sandeep Gosain) (Girish Agrawal) Judicial Member Accountant Member Dated: 31 July, 2025 Anandi. Nambi, Steno. Copy to : 1. The Appellant 2. The Respondent 3. DR, ITAT, Mumbai 4. 5. Guard File CIT Printed from counselvise.com 5 ITA No.3419/MUM/2025 Raj Talreja AY 2020-21 BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai Printed from counselvise.com "