SURESH BETHAVANDU,CHENNAI V. DCIT, NCC-17(1), CHENNAI

ITA 2285/CHNY/2024

AI Insights

The case involves an appeal by Suresh Bethavandu against the denial of a foreign tax credit relief under section 90 of the Income Tax Act, amounting to Rs. 19,29,739. The denial was initially based on the grounds that the claim was filed after the due date. The assessee argued that due to the COVID-19 pandemic, the filing was delayed beyond the usual deadline, citing the TOLA guidelines which extended the deadline to March 31, 2021. However, the lower authorities adhered to an earlier CBDT extension deadline of January 10, 2021. The Tribunal's decision to allow the appeal for statistical purposes indicates a need for a re-evaluation of the applicable deadlines for filing the foreign tax credit claim.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 298670 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 22-10-2024
• Assessment Year: 2020-2021
• Appeal Filed On: 29-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHINTHAPALLI MEHER CHAND
• Assessee Lawyers: V. BALAJI; VIRTUAL
• Keywords: Set aside
• Section: 90

Judgement Text

"आयकर अपीलीय अधिकरण, ’डी’ न्यायपीठ, चेन्नई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH: CHENNAI श्री एबी टी. वर्की, न्यायिर्क सदस्य एवं श्री अयिताभ शुक्ला, लेखा सदस्य क े समक्ष BEFORE SHRI ABY T VARKEY, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.2285 /Chny/2024 निर्ाारण वर्ा /Assessment Years: 2020-21 Suresh Bethavandu, New No.34, Old No.51, Visreya Padmanabhan Nagar, 4th Street, Adyar, Besant Nagar, Chennai-600 020. [PAN: ALNPS1458E] Deputy Commissioner of Income Tax, Non-Corp circle-17(1), Chennai (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant by : Shri V.Balaji, CA(virtual) प्रत्यर्थी की ओर से /Respondent by : Mr.Chinthapalli Meher Chand, JCIT सुिवाई की तारीख/Date of Hearing : 22.10.2024 घोर्णा की तारीख /Date of Pronouncement : 08.11.2024 आदेश / O R D E R PER AMITABH SHUKLA, A.M : This appeal is filed against the order bearing DIN & Order No.ITBA/APL/S/250/2024-25/1067145691(1) dated 30.07.2024 for the assessment years 2020-21. Through the aforesaid appeal the assesse has challenged order u/s 250 dated 30.07.2024 passed by ADDL/JCIT(A)-1, Lucknow. ITA No.2285 /Chny/2024 :- 2 -: 2.0 The only issue in the case raised by the appellant through the grounds of appeal is regarding denial of its foreign tax credit relief u/s 90 amounting to Rs. 19,29,739/- by the AO on account of the same having been filed after the due date. Through its paper book filed during the course of present proceedings the Ld. Counsel pleaded that it was required to file a Form-67 mandatory for claim of FTC relief u/s 90 on or before 31.07.2020. However, owing to Covid-19 scenario it was able to file the same only on 26.02.2021. It is the case of the Ld. Counsel of the assesse that the revised TOLA guidelines entitled the assesse to file it upto 31.03.2021. The Ld. DR contended that the view taken by the Ld. CIT(A) that as per the extended time lines the same was required to be filed by January 10, 2021, is correct. The Ld. DR thus heavy relied upon the order of CIT(A). 3.0 We have heard rival submissions in the light of material on records. The only controversy in the issue is as to whether the time lines prescribed in the TOLA guidelines would prevail over the time lines extension promulgated by the CBDT. In our considered opinion the view taken by the Ld. CIT(A) is not correct and deserves to be revisited. Accordingly, we deem it fit to set aside the order of the lowers authorities and direct the Ld. CIT(A) to readjudicate the matter afresh after ITA No.2285 /Chny/2024 :- 3 -: considering time extensions prescribed in TOLA guidelines and judicial pronouncements on the matter, after giving opportunities of being heard to the assesse. The assesse shall comply with all the notices issued by the Ld.First Appellate Authority. Accordingly the grounds of appeal raised by the assesse are allowed for statistical purposes. 4.0 In the result the appeal raised by the assesse is allowed for statistical purposes. Order pronounced on 8th , November-2024 at Chennai. Sd/- ( एबी टी. वकी) (ABY T VARKEY) न्यानयक सदस्य / Judicial Member Sd/- (अयिताभ शुक्ला) (AMITABH SHUKLA) लेखा सदस्य /Accountant Member चेन्नई/Chennai, नदिांक/Dated: 8th , November-2024. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - Chennai 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF "