Foreign tax credit claim cannot be denied for delayed Form No. 67 filing when the form was already on record before processing.

Foreign tax credit under the treaty could not be denied merely because Form No. 67 was filed after the return due date, where the form was already on record before processing of the return. Rule 128 filing was treated as procedural and directory, meant to facilitate administration of the claim, not as a condition precedent that could defeat substantive credit. On that basis, the belated filing of Form No. 67 did not justify denial of the foreign tax credit, and the credit was required to be allowed.

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Issues: Whether Foreign Tax Credit could be denied merely because Form No. 67 was filed after the due date prescribed for filing the return of income.

Analysis: The assessee had claimed foreign tax credit under the relevant treaty and the return was processed when Form No. 67 was already on record. The delay was only in filing the form and not in the substantive claim itself. The filing requirement under Rule 128 was treated as procedural and directory, intended to facilitate implementation of the Act, and not as a condition that could defeat the credit once the form was available before processing of the return.

Conclusion: The denial of Foreign Tax Credit on the ground of belated filing of Form No. 67 was not justified, and the credit was required to be allowed.

Ratio Decidendi: A procedural filing requirement for claiming foreign tax credit, where the prescribed form is available before processing, is directory and cannot be used to deny substantive relief solely for delayed filing.

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