Tanagundi Bhogeswara Prasad vs. Assistant Director of Income Tax

Parties Involved

Facts Summary

Tanagundi Bhogeswara Prasad, an Indian resident, was employed by Envy Limited, Norway, from 18 October 2018 to 15 June 2019, earning salary income taxed in Norway. He filed his income return in India under section 139(4) on 31 March 2020, declaring total income of ₹ 8,097,980 and claiming foreign tax credit of ₹ 240,517 under section 90 of the Income Tax Act. However, Form No. 67, required for claiming foreign tax credit, was not filed along with the return. Consequently, the foreign tax credit was denied. The assessee filed a rectification application under section 154, which was rejected by the Central Processing Centre on 29 January 2022, raising a revised demand of ₹ 269,860 without allowing the foreign tax credit. The assessee contends that the substantive right to claim foreign tax credit cannot be denied merely because Form No. 67 was filed belatedly.…

Legal Issues

• 1. Whether the assessee is entitled to foreign tax credit of ₹ 240,517 under section 90 of the Income Tax Act?

Judgment Outcome

Decided in favour of Assessee.

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