ITA Nos 760 and 761 of 2024 Ramesh Babu Jasti

Parties Involved

Facts Summary

The appellant, Shri Ramesh Babu Jasti, is a salaried employee who was on an assignment in the USA during the assessment years 2020-21 and 2021-22. He filed his income tax return in India and claimed foreign tax credit for taxes paid in the USA. However, the Assessing Officer denied the foreign tax credit because the appellant did not file Form 67 on or before the due date for filing the return of income. The appellant filed Form 67 after the Assessing Officer passed the assessment order. The appellant appealed against the order of the learned JCIT/Addl.CIT (A) and the DR upheld the denial of foreign tax credit. The appellant argued that filing Form 67 is only directory in nature and not mandatory, citing a decision of the ITAT Hyderabad Benches. The DR argued that filing Form 67 is mandatory as per Rule 128(9) of the I.T. Rules, 1962.…

Legal Issues

• 1. Whether the foreign tax credit can be denied for belated filing of Form 67?
• 2. Whether the appellant is entitled to claim foreign tax credit for taxes paid outside India?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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