SHRI SARTH KUMAR SEKKANOR MURUGESAN,CHENNAI V. ITO, NCW-22(4), CHENNAI

ITA 3067/CHNY/2025

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The case revolves around the denial of a foreign tax credit claimed by the assessee, Shri Sarth Kumar Sekkanor Murugesan, for the assessment year 2021-22. The Income Tax Officer (ITO) initially disallowed the credit during the processing of the return under section 143(1) of the Income Tax Act, 1961, and this decision was upheld by the Commissioner of Income Tax (Appeals). The primary legal contention was whether the disallowance of the foreign tax credit, claimed under section 90 of the Income Tax Act, was justified. The Tribunal considered the arguments and the relevant legal precedents, particularly the judgment of the Hon'ble High Court of Madras, which influenced their decision to allow the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822915 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2021-2022
• Appeal Filed On: 31-10-2025
• Other Referred Cases: Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 ITR 615 (Madras)]
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARV SREENIVASAN
• Assessee Lawyers: R.S.VIGNESHANAND
• Keywords: Rectification of order
• Section: 90; 2

Judgement Text

" आयकर अपीलीय अिधकरण, ’ड\u0002’ ा यपीठ, चे\u0011ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI \u0001ी मनु क ुमार िग र, \u000eाियक सद\u0012 एवं \u0001ी एस. आर. रघुनाथा, लेखा सद\u0012 क े सम BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R.RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3067/Chny/2025 िनधा\u0012रण वष\u0012/Assessment Years: 2021-22 Shri Sarth Kumar Sekkanor Murugesan, No.1, Thendral Avenue, West Gandhi Nagar, Avadi, Tiruvallur Chennai 600054 Tamil Nadu. v. ITO, Non-Corporate Ward-22(4), Tambaram. [PAN: EIUPS6478E] (अपीलाथ\u0017/Appellant) (\u0018\u0019यथ\u0017/Respondent) अपीलाथ\u0014 की ओर से/ Appellant by : Mr. R.S.Vigneshanand, CA \u0017\u0018थ\u0014 की ओर से /Respondent by : Mr.ARV Sreenivasan, CIT सुनवाईक तार\u0002ख/Date of Hearing : 17.12.2025 घोषणाक तार\u0002ख /Date of Pronouncement : 22.12.2025 आदेश / O R D E R PER MANU KUMAR GIRI, JM: This appeal filed by the assessee is directed against the order dated 31.07.2025 passed by the Addl/JCIT(A)-5, Mumbai for the assessment year 2021-22. 2. The assessee raised 1 grounds of appeal amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is Printed from counselvise.com justified in confirming the disallowance made by the Assess towards foreign tax credit claimed at of the Income Tax Act, 1961 circumstances of the case. 3. We note that the assessee file 22 after claiming foreign tax credit of intimation under section 143(1) disallowing the claim of foreign tax credit. order u/s.154 dated 08.04.2023 was passed. However, AO denied the foreign tax credit claimed at also dismissed the appeal 4. The ld. AR for the assessee credit is covered by the judgment of the Hon’ble Jurisdictional High Court in the case of Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 prayed for allowing the ground raised by the assessee. 5. The ld. DR Mr.ARV Sreenivasan CIT(A). 6. Heard both the parties and perused the material available on record. In this case, under section 90 of the Act. The return filed by the assessee was processed under section 143(1) 2 ITA No.3067/Chny/2025 Shri Sarth Kumar Sekkanor Murugesan justified in confirming the disallowance made by the Assess towards foreign tax credit claimed at Rs.1,03,900/- under section 90 Income Tax Act, 1961 [\"Act\" in short] in the facts and circumstances of the case. We note that the assessee filed his return of income for AY 20 after claiming foreign tax credit of Rs.1,03,900/-. The section 143(1) of the Act dated disallowing the claim of foreign tax credit. Subsequent rectification order u/s.154 dated 08.04.2023 was passed. However, AO denied the foreign tax credit claimed at Rs.1,03,900/-. On appeal, the ld. CIT(A) e appeal on merits. for the assessee submits that the issue of foreign tax credit is covered by the judgment of the Hon’ble Jurisdictional High Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 ITR 615 (Madras). Hence, prayed for allowing the ground raised by the assessee. Mr.ARV Sreenivasan, CIT relied on the order of the ld. Heard both the parties and perused the material available on record. In this case, the assessee claimed FTC of of the Act. The return filed by the assessee was section 143(1) of the Act by denying the claim of FTC ITA No.3067/Chny/2025 Shri Sarth Kumar Sekkanor Murugesan justified in confirming the disallowance made by the Assessing Officer under section 90 [\"Act\" in short] in the facts and d his return of income for AY 2021- . The CPC passed of the Act dated 22.03.2022 by Subsequent rectification order u/s.154 dated 08.04.2023 was passed. However, AO denied the On appeal, the ld. CIT(A) the issue of foreign tax credit is covered by the judgment of the Hon’ble Jurisdictional High Duraiswamy Kumaraswamy (WP No. 5834 of 2022 Hence, the ld. AR prayed for allowing the ground raised by the assessee. CIT relied on the order of the ld. Heard both the parties and perused the material available on the assessee claimed FTC of Rs.1,03,900/- of the Act. The return filed by the assessee was by denying the claim of FTC Printed from counselvise.com on account of the assessee filed Form 67 belatedly. rectification order u/s.154 dated 08.04.2023 was passed denying the Foreign tax credit. We the Hon'ble High Court o Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 ITR 615 (Madras), wherein, the Hon'ble High Court has held that filing of aforesaid form in terms of Rule 128 is only directory in nature. The rule is only for the implementation of the provisions of the Act and it will always be directory in nature and decided the issue in favour of the assessee. Under the above facts and circumstances, we direct the Assessing Officer to Thus, the grounds raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on Sd/- (एस. आर. रघुना था ) (S.R.RAGHUNATHA लेखा सद$य/ACCOUNTANT MEMBER चे&नई/Chennai, 'दनांक/Dated: 22nd December, 2025. EDN, Sr. PS 3 ITA No.3067/Chny/2025 Shri Sarth Kumar Sekkanor Murugesan the assessee filed Form 67 belatedly. rectification order u/s.154 dated 08.04.2023 was passed denying the e find that the issue is covered by the the Hon'ble High Court of Madras in the case of Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 ITR 615 (Madras), wherein, the Hon'ble High Court has held that filing of aforesaid form in terms of Rule 128 is only directory in nature. The the implementation of the provisions of the Act and it will always be directory in nature and decided the issue in favour of the assessee. Under the above facts and circumstances, we direct the Assessing Officer to give foreign tax credit in accordance wi Thus, the grounds raised by the assessee are allowed for statistical In the result, the appeal filed by the assessee is allowed for Order pronounced on 22nd day of December, 2025 at Chennai. ) S.R.RAGHUNATHA) /ACCOUNTANT MEMBER Sd/ (मनु क ुमार (MANU KUMAR GIRI &याियक सद$य/JUDICIAL MEMBER ember, 2025. ITA No.3067/Chny/2025 Shri Sarth Kumar Sekkanor Murugesan the assessee filed Form 67 belatedly. Subsequent rectification order u/s.154 dated 08.04.2023 was passed denying the find that the issue is covered by the decision of f Madras in the case of Duraiswamy Kumaraswamy (WP No. 5834 of 2022 & ors. Dated 06.10.2023 [460 ITR 615 (Madras), wherein, the Hon'ble High Court has held that filing of aforesaid form in terms of Rule 128 is only directory in nature. The the implementation of the provisions of the Act and it will always be directory in nature and decided the issue in favour of the assessee. Under the above facts and circumstances, we direct the foreign tax credit in accordance with law. Thus, the grounds raised by the assessee are allowed for statistical In the result, the appeal filed by the assessee is allowed for 5 at Chennai. Sd/- क ुमार िग र) MANU KUMAR GIRI) /JUDICIAL MEMBER Printed from counselvise.com 1. अपीलाथ\u0014/Appellant 2. \u0017\u0018थ\u0014/Respondent 3. आयकरआयु /CIT, Chennai / Madurai / Salem / Coimbatore. 4. िवभागीय\u0017ितिनिध/DR 5. गाड#फाईल/GF 4 ITA No.3067/Chny/2025 Shri Sarth Kumar Sekkanor Murugesan CIT, Chennai / Madurai / Salem / Coimbatore. ITA No.3067/Chny/2025 Shri Sarth Kumar Sekkanor Murugesan Printed from counselvise.com "