ITAT grants Credit of FTC u/s 90 on Proper Filing of Form 67 [Read Order]

The Income Tax Appellate Tribunal (ITAT), Jaipur Bench granted a credit of Foreign Tax Credit (FTC), on proper filing of Form 67.

The assessee, Ritesh Kumar Garg is a salaried person and during the year under consideration, he was employed with M/s. Infosys Limited. The assessee has been sent abroad and posted in Finland for service by his employer i.e M/s. Infosys Limited where he received salary and paid the taxes of that country of which Form 67 has been filed by the assessee. The said Form 67 was filed online and claimed relief under section 90 of the Act of Rs. 1,67,300.

However, the said claim of the assessee was denied by the AO. Aggrieved by the order of the AO, the assessee preferred to appeal before the CIT (A). The CIT (A) after considering the case of the assessee, dismissed the appeal filed by the assessee by upholding the disallowance made by the AO under section 90 of the Act. Being aggrieved by the order of the CIT (A), now the assessee is in appeal before the Tribunal.

The solitary ground raised by the assessee relates to challenging the order of CIT (A) in confirming the disallowance of relief of a foreign tax claim of Rs. 1,67,300/- under section 90 of the IT Act, 1961.

A Single Bench of the Tribunal consisting of Sandeep Gosain, Judicial Member observed that “Form 67 filed by the assessee before the tax authorities were available before the AO when the intimation under section 143(1) was passed. Therefore, in such circumstances, in my view, there were no reasons with the tax authorities for making disallowance when the said Form 67 was very much available with the AO at the time of framing the assessment order.”

“Therefore, considering the totality of facts and legal position as discussed above, I am of the view that the assessee is entitled to the credit of FTC under section 90 of the Act. Thus, I, accordingly direct the AO to allow the relief of FTC under section 90 of the Act in the case of the assessee” the Tribunal ruled.

To Read the full text of the Order CLICK HERE

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