Form 67 Filed within Deadline with ITR: ITAT allows Foreign Tax Credit [Read Order]

The Chandigarh bench of the Income Tax Appellate Tribunal ( ITAT ) directed the Assessing Officer ( AO ) to grant the Foreign Tax Credit ( FTC ) as Form 67 was filed within the extended deadline along with the Income Tax Return ( ITR ).

In this case, the assessee, Anita Sandhu, had filed the appeal before the ITAT against the impugned order passed by the Commissioner of Income Tax (Appeals) [CIT(A)] of the order dated 03.11.2023.

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The assessee had filed her income tax return for the assessment year ( AY ) 2021-22 on 02.09.2021, claiming a Foreign Tax Credit ( FTC ) of Rs. 71,308 for taxes paid in Canada. Form 67, detailing the income from abroad and the FTC, was submitted with the return on the same date. But, the FTC claim was rejected in the intimation issued under Section 143(1) on 05.07.2023.

The CIT(A) upheld the disallowance of FTC.

The assessee contended that the FTC claim should have been allowed since Form 67 had been furnished within the extended due date.

The ITAT bench observed that in this case, since Form 67 was filed within the extended deadline for the return of income, the bench reversed the CIT(A)'s order, noting that the CIT(A) failed to consider material documentary evidence, including the acknowledgment receipt of Form 67 filed on 02.09.2021 with the ITR.

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 The ITAT bench thus directed the AO to acknowledge Form 67 and grant the FTC to the assessee, in accordance with law.

The ITAT bench, comprising A.D. Jain ( Vice President ), allowed the appeal of the assessee.

The assessee was represented by Shri Nechchal Sandhu, and the Revenue was represented by Smt. Amanpreet Kaur.

To Read the full text of the Order CLICK HERE

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