Delay in Filing Form 67 not a Reason for Denial of Relief u/s 90 of Income Tax Act: ITAT [Read Order]

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) recently held that the relief under Section 90 of the Income Tax Act, 1961 should not be denied solely on the ground of a delay in filing Form 67.

The assessee Sobhan Lal Gangopadhyay is an individual and filed its return of income for Assessment Year 2020-21 declaring income of Rs.42,35,370/-. During the year under consideration, the assessee has claimed to be out of India for employment in South Korea from 16/04/2018 to 08/09/2019 under the assignment with Tata Daewood Commercial Vehicle Company Ltd.

In the return of income, assessee has claimed relief under Section 90 of the Income Tax Act at Rs.3,50,106/- being tax paid in the Republic of Korea. In the return processed under Section 143(1)(a) of the Income Tax Act, the said claim of relief under Section 90 of the Income Tax Act was not provided to the assessee on account of the reason that the prescribed Form No. 67 read with Clause 8 of Rule 128, was not filed belatedly i.e., after the due date of filing return under Section 139(1) of the Income Tax Act. For this very reason that Form No. 67, was not filed before the due date of filing of return, the said claim was denied.

Counsel for assessee referred the case of Sonakshi Sinha (supra), wherein it has been held that filing of Form No. 67 is directory in nature and not mandatory.

The bench, consisting of two members, Vice President Rajpal Yadav and Accountant Member Manish Borad, observed that the decision in the case of Sonakshi Sinha (supra) was squarely applicable to the facts of the present case.

Therefore, the Income Tax Appellate Tribunal held that the Assessing Officer should not have denied the relief under Section 90 of the Income Tax Act merely based on the delay in filing Form 67.

In result, appeal of the assessee was allowed

To Read the full text of the Order CLICK HERE

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