Section 91 of the Income Tax Act

Income from shares and securities held by banks as stock-in-trade constitutes business income, hence Section 14A disallowance is not attracted. Further, any disallowance under Section 14A cannot exceed the actual amount of exempt income earned by the assessee during the year.

The obligation to deduct tax at source under Section 195 arises only when the payment to a non-resident is a sum chargeable to tax under the Income-tax Act (Sections 4, 5, and 9), considering Sections 90, 91, and applicable DTAA. TDS is not automatically triggered by a mere remittance if the income is not taxable in India.

Foreign Tax Credit (FTC) is allowable even if no tax is paid in India on the corresponding income due to deductions under sections 10A or 10AA, or losses in other units. The scope of income eligible for deduction under Section 10AA includes interest on deposits and realized gains on forward contracts.

Filing Form No. 67 for Foreign Tax Credit (FTC) is a directory, not mandatory, requirement, and delayed filing does not lead to disallowance of FTC under Rule 128(9). Double Taxation Avoidance Agreements (DTAAs) override the provisions of the Income Tax Act, and rules cannot be contrary to the Act.

Procedural law serves as an aid to justice, not an obstruction, and should not ordinarily be construed as mandatory; it is subservient to substantive justice.

The claim for Foreign Tax Credit cannot be denied solely due to a delay in filing Form-67, as the requirement for filing Form-67 under Rule 128(9) is considered directory and not mandatory. The provisions of a Double Taxation Avoidance Agreement (DTAA) prevail over the Income-tax Act, 1961.

An assessee's claim for Foreign Tax Credit (FTC) cannot be rejected merely because Form 67 was filed after the due date under section 139(1), provided it is filed before the completion of assessment proceedings.

The requirement to file Form 67 by the due date for claiming foreign tax credit is directory, not mandatory, if filed before the completion of assessment proceedings.

State tax paid in a foreign country is not allowable as a deduction when computing total world income. Foreign tax credit can be claimed only as per the prescribed procedure, not as an expenditure.