This legal case involves Rani Khanna, the appellant, challenging the decisions of the Income Tax authorities which denied her the foreign tax credit due to the late submission of Form No.67, across three consecutive assessment years: 2019-20, 2020-21, and 2021-22.
The case stems from the appeals filed against the orders of the National Faceless Appeal Centre (NFAC), Delhi. The primary issue was the denial of the foreign tax credit due to the delayed filing of Form No.67, which is mandatory for claiming such credits under Rule 128(9) of the Income-tax Rules, 1962.
The appellant’s counsel argued that the denial based solely on the timing of the filing was unjust and cited a precedent from the ITAT Mumbai Bench, which had ruled in a similar situation that such a delay should not preclude taxpayers from claiming their rightful credits. The Tribunal agreed with this viewpoint, referencing the decisions made in other similar cases, and directed the Assessing Officer to grant the foreign tax credit upon verifying the forms submitted.
The Tribunal’s decision underscores the principle that procedural lapses should not override substantive rights, especially when the taxpayer has complied with the primary requirements. This case sets a significant precedent for future disputes involving procedural delays in tax filings.
Rani Khanna vs. DCIT Circle-28(1), New Delhi – ITA 2540/DEL/2022
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