SATISHKUMAR EKAMBARAM,INDIA V. THE INCOME-TAX OFFICER, NAMAKKAL

ITA 2070/CHNY/2024

AI Insights

The case involves appeals by Shri Satishkumar Ekambaram against the denial of Foreign Tax Credit (FTC) for the Assessment Years 2018-19 and 2019-20. The FTC was initially denied by the Centralized Processing Center (CPC), Bengaluru, due to the late filing of Form No.67, which was required to be submitted along with the original return of income as per Rule 128(9). The assessee had filed the original return without claiming FTC and later filed a revised return along with Form No.67, which was still considered belated by the CPC. The CIT(A) upheld the CPC's decision, leading to the current appeals. The Tribunal, referencing a similar case and a High Court decision, found in favor of the assessee, emphasizing that the procedural requirement for filing Form No.67 is not stringent and should not bar the FTC claim.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 39323 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-11-2024
• Assessment Year: 2019-2020
• Appeal Filed On: 04-08-2024
• 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: ASSESSEE; V.SRINIVASAN LD.
• Section: 143(1)

Judgement Text

" आयकर अपीलीय अिधकरण ‘ए’ \u0010ा यपीठ चे\u0015ई म\u0018। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI मा ननीय +ी मनोज क ुमा र अ/वा ल ,लेखा सद4 एवं मा ननीय +ी मनु क ुमा र िग7र, \u0010ा ियक सद4 क े सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI MANU KUMAR GIRI, JM 1. आयकरअपील सं ./ ITA No.2069/Chny/2024 (िनधा 9रणवष9 / Assessment Year: 2018-19) & 2. आयकरअपील सं ./ ITA No.2070/Chny/2024 (िनधा 9रणवष9 / Assessment Year: 2019-20) Shri Satishkumar Ekambaram 461, Chakranagar Paramathi-Velur, Namakkal-638 182. बना म/ Vs. ITO Ward-2, Namakkal. \u0001थायीलेखासं./जीआइआरसं./PAN/GIR No. BJZPS-4367-P (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001c कीओरसे/ Appellant by : None \u001f थ\u001cकीओरसे/Respondent by : Shri AR.V. Srinivasan (Addl.CIT)-Ld. Sr. DR सुनवाई की तारीख/Date of Hearing : 04-11-2024 घोषणा की तारीख /Date of Pronouncement : 04-11-2024 आदेश / O R D E R Per BENCH: 1. Aforesaid appeals by assessee for Assessment Years (AY) 2018- 19 & 2019-20 have identical issue i.e., allowance of foreign tax credit (FTC). At the time of hearing, none appeared for assessee and accordingly, the appeals were heard with the able assistance of departmental representative. 2 2. The appeal for AY 2018-19 arises out of an order passed by Learned Addl. /Joint Commissioner of Income Tax (Appeals)-1, Jaipur, [CIT(A)] on 06-06-2024 in the matter of an intimation issued by CPC, Bengaluru u/s 143(1) on 10-06-2020 denying Foreign Tax Credit of Rs.9.59 Lacs 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. 3. It emerges that the assessee filed original return of income on 30- 08-2019 but it did not claim FTC of Rs.9.59 Lacs. The assessee revised return of income on 31-03-2019 and filed Form No. 67 on 30-03-2019. 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. 4. 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. 3 5. Since facts as well as issue in AY 2019-20 are pari-materia the same, our adjudication as above shall apply mutatis-mutandis to this year also. 6. Both the appeals stand allowed for statistical purposes. Order pronounced on 04th November, 2024. Sd/- (MANU KUMAR GIRI) \u0010ा ियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे2ई Chennai; िदनांक Dated : 04-11-2024 DS आदेशकीNितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु;/CIT Salem. 4. िवभागीय\u001fितिनिध/DR 5. गाड@फाईल/GF "