India's Income Tax Appellate Tribunal overturns penalty and affirms foreign tax credit claim

ITAT Section 271AA penalty foreign tax credit Form 67 India tax tribunal

The Income Tax Appellate Tribunal (ITAT) in Mumbai set aside a Section 271AA penalty of ₹49.35 crore that had been imposed on POSCO Holdings Inc, a South‑Korean steel exporter, for allegedly failing to report a sale of raw materials to its Indian associate. The tribunal held that reasonable cause was established and the penalty could not survive.

In a separate ruling, the New Delhi bench of the ITAT held that a foreign tax credit (FTC) claim cannot be rejected solely because Form 67 was filed after the statutory due date. The appellant, Parag Gupta, an employee of Amazon Seller Services Pvt Ltd, sought an FTC of Rs 13.91 lakh for U.S. taxes paid. The tribunal found that the procedural delay did not override the double‑taxation avoidance agreement, and the FTC was allowed.

Sources

Patna ITAT Deletes Search Additions Based on Retracted Statements; No GP Addition Without Rejecting Books [taxguru.in]

8 days ago

Procedural Delay in Filing Form 67 cannot Extinguish Substantive Right to FTC: ITAT [www.taxscan.in]

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