Foreign Tax Credit cannot be denied solely for delayed Form 67 filing when treaty relief remains otherwise available.

Foreign Tax Credit could not be denied merely because Form 67 was filed after the Rule 128 timeline, as the filing requirement was treated as directory rather than mandatory. The assessee's entitlement to credit was not in dispute, and the DTAA benefit was considered to override the procedural lapse. On that basis, delayed filing alone was not a valid ground to reject the claim, and the matter was remanded for verification of the supporting material and adjudication in accordance with law.

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Issues: Whether Foreign Tax Credit could be denied merely because Form 67 was filed belatedly, and whether the requirement under Rule 128 was mandatory or directory.

Analysis: The assessee's entitlement to Foreign Tax Credit was not in dispute. The requirement to furnish Form 67 before filing the return under Rule 128(8) and Rule 128(9) was held to be directory, since the rule did not prescribe denial of credit as a consequence of delayed filing. The treaty benefit under the DTAA was treated as overriding the procedural rule, and the claim could not be rejected solely for non-compliance with the filing timeline. The issue was therefore restored to the Assessing Officer for verification of the supporting material and adjudication in accordance with law.

Conclusion: Foreign Tax Credit could not be denied merely for delayed filing of Form 67, and the matter was remanded for factual verification of the claim.

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