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Facts
The assessee claimed Foreign Tax Credit (FTC) of Rs. 4,93,235/- which was denied by the AO for delay in filing Form 67 beyond the due date. The assessee filed Form 67 on 30.09.2022, after the prescribed due date of 31.07.2022.
Held
The Tribunal held that filing of Form 67 in terms of Rule 128 is directory in nature, not mandatory. The rule is for the implementation of the Act's provisions and is directory. Following previous judgments, including a High Court decision, the Tribunal directed the AO to verify and grant the FTC.
Key Issues
Whether the delay in filing Form 67 beyond the due date warrants denial of Foreign Tax Credit.
Sections Cited
90, 90A, 139(1), 143(1), 154, Rule 128
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, AM : Aforesaid appeal by assessee for Assessment Year (AY) 2022-23 arises out of the order of learned Commissioner of Income Tax (Appeals), ADDL/JCIT (A)-5 Mumbai [‘CIT(A)’ in short] dated 12.08.2025 in the matter of intimation order u/s.154 r.w.s 143(1) of the Act passed on 15.06.2023 denying Foreign Tax Credit of Rs.4,93,235/- as claimed by the assessee u/s 90/90A of the Act. The same was denied for delay in filing of requisite Form 67 along with return of income.
The assessee has filed Form 67 beyond due date i.e. 31.07.2022 prescribed u/s.139(1) of the Act. Form 67 was filed by the assessee on 30.09.2022 after the due date. The AO denied the claim of Foreign Tax Credit for the reason that the assessee has failed to submit the Form 67 within the due date prescribed u/s.139(1) of the Act. However, Ld. AR relied on the decision of the Hon’ble Madras High Court’s judgement
:-2-: ITA. No:2496/Chny/2025 in the case of Duraiswamy Kumaraswamy Vs. PCIT-8 Chennai (W.P.No.5834 of 2022 and W.M.P.Nos.5925 and W.M.P. Nos.5925 and 5927 of 2022) prayed for allowing the Foreign Tax Credit denied by the AO.
Per contra, the ld.DR relied upon the impugned order of the ld.CIT(A).
We find that this issue has been decided in assessee’s favour by this Tribunal in the case of (i) ITO vs. Smt. Chengam Durga (ITA No.1491/Chny/2023 dated 08-04 2024) (ii) Amit Singh Baid Mehta vs ADIT, CPC in & 266/Chny/2023 dated 28.06.2013 and the bench considering the decision of Hon’ble High Court of Madras in the case of Duraiswamy Kumaraswamy (WP No.5834 of 2022 & ors. order dated 06.10.2023) held that Filing of this form in terms of Rule 128 was only directory in nature. The Rule is only for the implementation of the provisions of the Act and it would always be directory in nature. Respectfully following the same, we direct the AO to verify and grant impugned Foreign Tax Credit of Rs.4,93,235/- to the assessee.
In the result, the appeal of the assessee stands allowed.
Order pronounced in the court on 02nd February, 2026 at Chennai.