Foreign tax credit not denied for delayed Form 67 filing where the form was submitted before return processing.

Foreign tax credit was considered in light of delayed filing of Form 67, where the return was filed within time and the form was uploaded before processing under section 143(1). The Tribunal view noted that Rule 128(9) is procedural and directory, so credit should not be denied merely because Form 67 was not filed with the return if it was available before completion of processing. On those facts, the denial of foreign tax credit was not sustainable and the credit was treated as allowable.

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Issues: Whether Foreign Tax Credit could be denied merely because Form 67 was filed after the due date but before processing of the return under section 143(1).

Analysis: The return for the relevant assessment year had been filed within time, and Form 67 was uploaded before the intimation under section 143(1) was generated. The Tribunal followed the view that the requirement in Rule 128(9) is procedural and directory in nature, and that a claim for foreign tax credit cannot be rejected solely for belated filing of Form 67 when the form is available before completion of processing. On these facts, the denial of credit was not sustainable.

Conclusion: The issue was decided in favour of the assessee, and the foreign tax credit was held allowable.

Ratio Decidendi: Where Form 67 is furnished before processing of the return, foreign tax credit cannot be disallowed merely for non-filing of the form along with the return, as the filing requirement under Rule 128(9) is directory.

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