Foreign tax credit remains available despite delayed Form 67 filing, as Rule 128 is treated as directory.

Foreign tax credit under section 90 cannot be denied solely because Form No. 67 was filed after the due date. Rule 128 was treated as a procedural requirement for implementing the substantive relief, and therefore directory rather than mandatory. On that basis, delayed filing did not defeat the assessee's entitlement to credit, and the revenue's objection was rejected.

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Issues: Whether foreign tax credit could be denied merely because Form No. 67 was not filed within the due date, and whether the filing requirement under Rule 128 is mandatory or directory.

Analysis: The assessee had claimed relief under section 90, but the credit was denied in processing and again in rectification proceedings on the ground that Form No. 67 had not been filed in time. The issue was held to be covered by Tribunal precedent, and the Court relied on the view that the filing of Form No. 67 under Rule 128 is only a procedural requirement for implementation of the substantive relief. The rule was treated as directory rather than mandatory.

Conclusion: Foreign tax credit could not be denied solely for delayed filing of Form No. 67. The assessee was entitled to the credit, and the revenue's appeal failed.

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