Foreign tax credit claim where Form 67 was filed late after s.143(1) processing; credit allowed, remanded for verification.

The dominant issue was whether foreign tax credit (FTC) could be denied solely because Form 67 was filed after the due date and after processing under s.143(1). The ITAT held that ss.90-91 confer the substantive entitlement to double taxation relief and, absent any statutory amendment making timely filing of Form 67 a condition precedent, Rule 128 is procedural and therefore directory; the Rules cannot override the Act. Consequently, late filing of Form 67 could not, by itself, defeat the FTC claim. The matter was remanded to the AO for limited verification and grant of FTC in accordance with law, with opportunity of hearing, and the appeal was allowed for statistical purposes.

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Issues Involved:
The appeal challenges the denial of relief of foreign Tax Credit due to late filing of Form.No.67 before the due date of income tax return. The main issue revolves around the eligibility of the assessee to claim Tax Relief under Section 90 of the Income Tax Act based on the Double Taxation Avoidance Agreement (DTAA) with a foreign country.

Issue 1: Condonation of Delay in Filing Appeal
The delay of 6 days in filing the appeal before the Tribunal was condoned after considering the reasonable grounds presented by the assessee's representative and the absence of specific objections from the Departmental Representative.

Issue 2: Denial of Foreign Tax Credit (FTC)
The assessee, deriving income from various sources including salary from a foreign country, filed for Foreign Tax Credit (FTC) under Section 90 of the Act based on the DTAA with Maynmar. The CIT(A) denied the FTC claim due to the late filing of Form No.67, which the assessee submitted online after the processing of the return under section 143(1) of the Act.

Issue 3: Appeal Against CIT(A) Order
The appeal challenges the CIT(A)'s confirmation of the Assessing Officer's decision to deny the FTC claim, emphasizing that the provisions of the Act should be considered over procedural requirements like the timely filing of Form No.67.

Issue 4: Interpretation of Rules and DTAA
The Tribunal considered the mandatory nature of filing Form No.67 for claiming FTC under Rule 128 of the Income Tax Rules, juxtaposed against the provisions of Section 90 and 91 of the Act regarding double taxation relief and agreements with foreign countries.

Issue 5: Judicial Precedents and Decision
Relying on judicial decisions, including Tribunal rulings in similar cases, the Tribunal concluded that the DTAA provisions override domestic laws, and the filing of Form No.67 is directory, not mandatory. The Tribunal directed the assessing officer to reevaluate the FTC claim in light of the DTAA and judicial interpretations.

In conclusion, the Tribunal allowed the appeal for statistical purposes, emphasizing the primacy of DTAA provisions in determining the eligibility for Foreign Tax Credit and directing a reassessment of the claim by the assessing officer in accordance with the law and judicial precedents.

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