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Facts
The assessee was denied foreign tax credit benefit for Assessment Year 2018-19 by lower authorities because Form 67 was filed on 29.09.2018, beyond the prescribed due date, even though it was before the CPC's processing dated 12.03.2020. The denial was upheld in the lower appellate discussion.
Held
The tribunal, relying on the case law Duraiswamy Kumaraswamy vs. PCIT (2024) 460 ITR 615(Mad.), held that the compliance requirement for filing Form 67 is only directory in nature, not mandatory. Therefore, the tribunal found merit in the assessee's appeal and directed the assessing authority to grant the foreign tax credit benefit.
Key Issues
Whether the filing of Form 67 for claiming foreign tax credit beyond the prescribed due date but before CPC processing renders the assessee ineligible, i.e., whether the compliance is mandatory or directory.
Sections Cited
143(1)
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER This assessee’s appeal for Assessment Year 2018-19 arises against the Addl./JCIT(A), Kochi’s DIN & order No. ITBA/APL/S/250/2025-26/1081296535(1) dated 29.09.2025, in proceedings u/s 143(1) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires at the outset during the course of hearing that both the learned lower authorities have refused to grant foreign tax credit benefit to the assessee for the sole reason that he had filed/uploaded the corresponding prescribed Form 67 on the portal on 29.09.2018 i.e. beyond the prescribed due date but very well before the CPC’s processing dated 12.03.2020, as upheld in the lower appellate discussion.
Kuldeep Singh 4. Mr. Shukla vehemently argues that the above compliance to be made at the assessee’s behest is very much mandatory in nature and his failure to this effect renders him ineligible for claiming foreign tax credit benefit in issue. This tribunal sees no merit in the Revenue’s forgoing vehement contentions as case law Duraiswamy Kumaraswamy vs. PCIT (2024) 460 ITR 615(Mad.) holds that such a compliance is only directory in nature. This tribunal therefore finds merit in the assessee instant sole substantive ground and directs the learned assessing authority to grant him the impugned foreign tax credit benefit in very terms.