Foreign Tax Credit granted despite late Form 67 filing; Tribunal rules filing deadline is directory, not mandatory.

The Tribunal allowed the appeal, directing the Assessing Officer to grant the Foreign Tax Credit to the assessee despite the delay in filing Form 67. It was determined that the requirement to file Form 67 before the income tax return due date is directory, not mandatory. The Tribunal relied on previous case law and the Supreme Court's order extending the limitation period, finding no contrary decisions. Thus, the denial of the credit based solely on the delayed filing was overturned.

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Issues involved:
The denial of credit of Foreign Tax Credit for the delay in filing of Form 67.

Summary:
The appeal was filed against the order of the CIT(A) confirming the denial of the credit of Foreign Tax Credit due to the delay in filing Form 67. The assessee filed a revised return claiming relief for Foreign Tax Credit, which was disallowed. The only reason for denying the credit was the delay in filing Form 67.

The Tribunal considered previous cases where it was held that the filing of Form 67 within the extended period of limitation as per the order of the Supreme Court allowed for the Foreign Tax Credit. It was also noted that the requirement of filing Form 67 before the due date of filing the return of income is directory in nature and not mandatory. The Tribunal directed the Assessing Officer to allow the Foreign Tax Credit to the assessee based on these interpretations.

No distinguishing decision was brought to the attention of the Tribunal, and therefore, following the precedent set by the Co-ordinate Bench, the appeal of the assessee was allowed.

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