Kavish Arora vs. Commissioner of Income Tax (Appeals)

Parties Involved

Facts Summary

This appeal is filed by the assessee, Kavish Arora, against the order under section 250 of the Income-tax Act, 1961 denying Foreign Tax Credit (FTC) claimed by the assessee under article 25(2)(a) of the India USA Double Taxation Avoidance Agreement (DTAA) read with section 90 of the I.T. Act. The claim for Foreign Tax Credit was denied because the assessee filed Form 67 on 23.03.2022, which was after the extended due date of 10.01.2021 for filing the return of income under section 139(1) of the Act. The assessee filed a revised return and claimed Foreign Tax Credit along with Form 67, but since Form 67 was filed belatedly and not along with the return as specified under section 139(1) of the Act, the claim for Foreign Tax Credit was denied.…

Legal Issues

• 1. Whether the late filing of Form 67 should result in the disallowance of Foreign Tax Credit.
• 2. Whether the principles of natural justice were violated by not affording a reasonable opportunity of being heard to the appellant.
• 3. Whether the disallowance of the FTC is arbitrary and unwarranted.
• 4. Whether the Ld. CIT(A) erred in disregarding relevant judicial pronouncements and departmental circulars that support the appellant’s claim for FTC.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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