Foreign tax credit cannot be denied solely for delayed Form 67 filing, subject to verification of the claim.

Foreign tax credit could not be denied merely because Form No. 67 was not filed along with the return under section 139(1). Rule 128(9) was treated as directory, intended to implement the foreign tax credit mechanism under section 90, so delayed filing of the form did not by itself justify rejection of the claim. The denial was set aside, subject to verification of Form No. 67.

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Issues: Whether denial of foreign tax credit for non-furnishing of Form No. 67 along with the return of income was sustainable.

Analysis: The foreign tax credit claim was disallowed only because Form No. 67 was not filed along with the return under section 139(1). The Tribunal followed its earlier view that Rule 128(9) is directory and is meant for implementation of the foreign tax credit provisions under section 90. The claim was therefore not liable to be rejected merely on the ground of delayed filing of Form No. 67, subject to verification of the form.

Conclusion: The denial of foreign tax credit was set aside and the assessee was held entitled to the credit after verification of Form No. 67.

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