VIJAY INDUBHAI SHETH,SATELLITE V. INCOME TAX OFFICER WARD 3(3)(5), VEJALPUR

ITA 780/AHD/2025

AI Insights

The case involves Vijay Indubhai Sheth, the appellant, who filed an appeal against the order of the Additional Commissioner of Income Tax (Appeals)-2, Chennai, which had dismissed his earlier appeal due to a delay of 772 days in filing. The delay was attributed to the assessee's travel outside India, preventing him from accessing the Department's website to verify the status of his Rectification Application under section 154 of the Income Tax Act, 1961. The assessee had initially filed a belated return for the Assessment Year 2021-22, claiming a relief of tax paid outside India, which was denied due to the late filing of Form No. 67. The Tribunal considered precedents that supported the assessee's position that the Foreign Tax Credit cannot be denied due to the belated filing of Form No. 67.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 398359 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2021-2022
• Other Referred Cases: Eastman Industries Ltd. Vs. ACIT, Neetu Agarwal Vs. ITO, Kolkata
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order
• Section: 154; 90

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T. R. Senthil Kumar, Judicial Member Vijay Indubhai Sheth 548, Satyagrah Chhavni Lane 23, Satellite Road, Satellite, Ahmedabad Gujarat-380015 PAN: ACZPS3778C (Appellant) Vs The ITO, Ward-3(3)(5), Ahmedabad (Respondent) Assessee Represented: Shri Dipen Shukhadia, A.R. Revenue Represented: Shri Sudhakar Verma, Sr.D.R. Date of hearing : 03-06-2025 Date of pronouncement : 06-06-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the appellate order dated 22.03.2025 passed by the Additional Commissioner of Income Tax (Appeals)-2, Chennai refusing to condone the delay of 782 days in filing the appeal as against the Rectification order passed under section 154 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2021-22. ITA No: 780/Ahd/2025 Assessment Year: 2021-22 I.T.A No. 780/Ahd/2025 A.Y. 2021-22 Page No Vijay Indubhai Sheth. vs. ITO 2 2. Brief facts of the case is that the assessee is an individual who has filed the Return of Income for the Asst. Year 2021-22 belatedly on 31-03-2022 claiming relief of tax paid outside India of Rs.7,01,004/- along with Form No. 67. The return was processed u/s. 143(1) of the Act vide intimation dated 30-10-2022. However the Foreign Tax Credit claimed by the assessee was denied because of late filing of Form No. 67 and demand tax of Rs.10,82,240/-. 3. The assessee moved an application for Rectification Application u/s. 154 of the Act, the same was rejected on 10-01-2023. Since the assessee was travelling outside India, he could not verify by logging into the website of the Department, which has resulted in filing the appeal with the delay of 772 days. The assessee further explained that till passing of Rectification order 408 days was conceived. It is thereafter 364 days delay in filing the appeal and therefore requested Ld. CIT(A) to condone the delay. However the above request was rejected by Ld. CIT(A) observing that the reasons cited by the assessee are in routine manner and sufficient cause is not made out by the assessee, thereby dismissed the appeal in limine. 4. Aggrieved against the appellate order, assessee is in appeal before us raising the following Grounds of Appeal: The following grounds are without prejudice to each other. In view of the facts and circumstances of the case- 1. The Learned CIT (A) has erred not condon the delay filing an appeal. I.T.A No. 780/Ahd/2025 A.Y. 2021-22 Page No Vijay Indubhai Sheth. vs. ITO 3 2. The Learned CIT (A) has not appreciated the facts and circumstances mentioned in delay condonation application before him. 3. The Learned NFAC has erred in not allowing relief u/s 90 i.e. credit of tax Paid in foreign country. 5. Ld. Counsel for the assessee filed a Paper Book which contains Form No. 67 with Acknowledgement and other details. Thus Ld. Counsel relied upon Delhi Tribunal decision in the case of Eastman Industries Ltd. Vs. ACIT in ITA No. 2990/Del/2022 and Others order dated 18-08-2023 and Kolkata Tribunal decision in the case of Neetu Agarwal Vs. ITO, Kolkata in ITA No. 1898/Kol/2024 dated 18-11-2024 on the proposition that the FTC cannot be denied to the assessee on late filing of Form No. 67. 6. Per contra Ld. Sr. D.R. appearing for the Revenue supported the order passed by the Lower Authorities and requested to uphold the same. 7. We have given our thoughtful consideration and perused the materials available on record. It is the case of the assessee that Rectification Petition filed against the u/s. 143(1) order and after receipt of the Rectification order, the assessee filed the appeal belatedly before Ld. CIT(A). We are satisfied with the reasons stated before Ld. CIT(A). Thus we hereby condone the delay of 772 days in filing the appeal before Ld. CIT(A). It is settled principle of law that FTC cannot be denied to an assessee having filed the same belatedly. Since the Lower Authorities not considered the belated filing of Form No. 67 by the assessee, we deem it fit to setaside the matter back to the file of Jurisdictional Assessing Officer to I.T.A No. 780/Ahd/2025 A.Y. 2021-22 Page No Vijay Indubhai Sheth. vs. ITO 4 consider the Form No. 67 claiming Foreign Tax Credit by giving proper opportunity of hearing to the assessee and redo the assessment in accordance with law. 8. In the result, the appeal filed by the Assessee allowed for statistical purpose. Order pronounced in the open court on 06-06-2025 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 06/06/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "