SHAH TC OVERSEAS PRIVATE LIMITED,ROHINI, DELHI V. DY. COMMISSIONER OF INCOME TAX, CIRCLE- 22(2), CR BUILDING, DELHI

ITA 1762/DEL/2024

AI Insights

The case involves Shah TC Overseas Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-1, Pune, concerning the disallowance of a Foreign Tax Credit under Section 90/90A of the Income Tax Act, 1961, for the assessment year 2018-19. The primary contention was that the Foreign Tax Credit of Rs. 10,69,740 was not allowed by the Centralized Processing Center (CPC) due to the late filing of the income tax return and Form 67. The Tribunal examined the timelines of the filings and the procedural aspects of Form 67, ultimately deciding in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473208 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2018-2019
• Other Referred Cases: Avik Anup Prabhu, New Delhi vs. DCIT, Circle 22(2), New Delhi, Manoj Kumar Srivastava, New Delhi vs. ACIT, Gauam Budh Nagar, UP, Bhaskar Dutt vs. DCIT (International Taxation), Delhi vs. DCIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: PRAMOD JAIN; ADVS
• Section: 143(1); 139

Judgement Text

" ITA No. 1762/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 1762/Del/2024 Assessment Year: 2018-19 Shah TC Overseas Pvt. Ltd., 301-301, Agarwal City Square, Mangalam Palace, Rohini, Sector 3, New Delhi PIN: 1100 85 Vs. Dy. CIT, Circle 22(2), Delhi PAN :AAACW4053C (Appellant) (Respondent) ORDER PER ANUBHAV SHARMA, JUDICIAL MEMBER: This appeal by the assessee is directed against the order dated 23.02.2024 of the Commissioner of Income Tax (Appeals)-1, Pune [hereinafter referred to as “CIT(A)”] Assessee by Shri Pramod Jain, Advs. Respondent by Shri Sahil Kumar Bansal, Sr. DR Date of hearing 11.02.2025 Date of pronouncement 19.02.2025 2 ITA No. 1762/Del/2024 pertaining to assessment year 2018-19 and arises out of the assessment order under section 143(1) of the Income Tax Act, 1961 [hereinafter referred as ‘the Act’]. 2. Grounds raised by the assessee are as follows: “1. That the order passed by the Id. CIT(A) as well as A.O. is bad in law and against the facts of the case. 2. That the L.d. CIT(A) and AO erred in not allowing Foreign Tax Credit u/s 90/90A of the Income Tax Act amounting to Rs. 10,69,740/-. 3. That the Ld. CIT(A) erred in sustaining the disallowance of Foreign Tax Credit on the grounds that return of income for AY 2018-19 was not filed within the due date. 4. That the Ld. CIT(A) erred in sustaining the disallowance of Foreign Tax Credit on the grounds that Form 67 was not filed within the due date. 5. That the Ld. CIT(A) erred in sustaining the disallowance of Foreign Tax Credit without providing an opportunity of personal hearing through video conferencing. 6. That the Ld. CIT(A) erred in confirming the disallowance without considering the fact that the Ld. AO (CPC) without making any query has disallowed the Foreign Tax Credit. 7. That the appellant carves leave to add, alter, modify or delete any of the ground of appeal.” 3 ITA No. 1762/Del/2024 3. Heard and perused the records. The brief facts of the case are that the appellant company is engaged in the business of consultancy in pharmaceuticals and providing domestic and international consultancy relating to registration of API/Bulk Drugs, Intermediate Chemicals & other pharma related products. The CPC did not allow foreign tax credits of Rs.10,69,740 under Section 90/90A of the Act. 4. On hearing both the sides, we find that the assessee is a Private Limited Company and it filed the return 26.09.2018. The acknowledgement of the same is of 18.10.2018. The intimation under Section 143(1) of the Act shows due date of filing the original return was 31.10.2018. 5. The Ld. CIT(Appeals) has sustained the disallowance on the basis of non-filing Form 67 before the due date. The relevant findings of Ld. CIT(Appeals) in this regard is as follows: \"In this case, the return of income for AY 2018-19 was not filed by the filed by the appellant on or before the due date specified for furnishing the return of income under sub-section (1) of section 139 of the Act. The extended due date of filing the return of income was 31.08.2018 whereas the appellant had filed the return of income on 30.09.2018 and Form No. 67 was also filed on 18.10.2018. Appellant has also accepted that it was filed belatedly. Thus, Form No. 67 was not filed by the appellant in time.\" 4 ITA No. 1762/Del/2024 6. However, we find that the appellant company being a Private Limited Company is subject to mandatory tax and statutory audit which and filed the original tax return on 26.09.2018 which was within the extended deadline of 31.10.2018 for the purpose of section 139(1) of the Act and on 18.10.2018, Form 67 claiming foreign tax credits was filed. Thus, it appears that the learned tax authorities have fallen in error in considering that there was any failure on the part of assessee’s company to file return or Form 67. Even otherwise, filing of Form 67, is procedural and directory requirement and not a mandatory one. Reliance can be placed in this regard on Co-ordinate Bench’s decisions dated 06.08.2024 in ITA No.775/Del/2024 in the case of Avik Anup Prabhu, New Delhi vs. DCIT, Circle 22(2), New Delhi; ITAT Order dated 24.05.2024 in ITA No.3007/Del/2023 in the case of Manoj Kumar Srivastava, New Delhi vs. ACIT, Gauam Budh Nagar, UP and ITAT Order dated 11.01.2023 in ITA No.1869/Del/2022 in the case of Bhaskar Dutt vs. DCIT (International Taxation), Delhi vs. DCIT. 5 ITA No. 1762/Del/2024 7. In the light of aforesaid, we sustain the grounds raised and allow the appeal of the assessee with consequential effects to be given by the learned Assessing Officer. Order pronounced in the open court on 19.02.2025. Sd/- Sd/- (MANISH AGARWAL) (ANUBHAV SHARMA) ACCOUNTANT MEMBRE JUDICIAL MEMBER Dated: 19 February, 2025 Mohan Lal Copy forwarded to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "