ITAT allows Foreign Tax Credit Claim by Form 67 filed with Revised Return instead of Original Return of Income [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has recently, in an appeal filed before it, allowed foreign tax credit claim by form 67, filed with revised return, instead of original return of income.

The aforesaid observation was made by the Mumbai ITAT, when, an appeal was preferred before it by the assessee, as against order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [CIT(A)], dated 20.05.2022 for the A.Y.2019-20.

The ground of the assessee’s appeal being that the CIT(A) has erred in not appreciating that submission of Form 67 is a procedural requirement and based on the substantive provisions of the Act read with the DTAA, the appellant should be eligible to claim relief of tax paid in Netherlands, the brief facts of the case were that the case are that the assessee had filed its return of income on 05.08.2019, declaring total income of ₹.21,56,790/-. Further, the assessee had also filed revised return of income on 16.06.2020 by declaring the same income as declared in the original return of income.

However, the assessee claimed relief under Section. 90 of Income-tax Act, 1961, of ₹.1,06,635/- by filing Form 67 along with the revised return of income.  And, the CPC processed the same under Section. 143(1) of the Income-tax Act and rejected the claim of the assessee and raised the demand of ₹.1,39,200/-.

 Aggrieved by the same, the assessee preferred an appeal before the CIT(A) and filed detailed submissions before him. However, after considering the submissions of the assessee, CIT(A) dismissed the same, thus leaving the assessee with the only option of preferring the instant appeal before the Tribunal.

At the time of hearing, it was submitted by Shri Ketan Ved, the AR for the assessee, that the tax relief claimed by the assessee in revised return of income, that the assessee had filed Form 67 while filing the revised return of income, and therefore that, the assessee is well placed by filing the Form-67 along with revised return of income before completion of the assessment proceedings.

However, on the other hand, Shri S.N. Kabra, the DR, relied on the orders of the lower authorities.

Hearing the opposing contentions of both sides and thereby perusing the materials available on record, the ITAT Panel of S. Rifaur Rahman, the Accountant Member thus held:

“Respectfully following the decision in the case of Sonakshi Sinha v. CIT, we note that assessee has filed the Form-67 along with revised return of income. Therefore, we allow the claim of the assessee. Accordingly, ground raised by the assessee is allowed. In the result, appeal filed by the assessee is allowed.

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