Foreign tax credit cannot be denied for belated Form No. 67 filing where the claim is otherwise admissible.

Foreign tax credit could not be denied merely because Form No. 67 was furnished after the due date, where the claim was already made in the return and the relevant figures were on record. Rule 128(9) was treated as procedural and directory rather than mandatory because it does not expressly provide forfeiture of credit for delay; the later extension of time to the end of the assessment year also supported that view. Where competing non-jurisdictional interpretations existed, the construction favourable to the assessee was applied, and the credit remained allowable despite belated filing.

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Issues: Whether foreign tax credit could be denied solely because Form No. 67 under Rule 128(9) of the Income-tax Rules, 1962 was filed after the due date but before processing of the return under section 143(1) of the Income-tax Act, 1961.

Analysis: The claim for foreign tax credit had been made in the return and the relevant figures were already reflected in the processing records, but the credit was disallowed only because Form No. 67 was uploaded belatedly. The decision turned on whether Rule 128(9) is mandatory or directory. Consistent Tribunal authority was noted to hold that the rule prescribes a procedure for claiming credit and does not expressly provide for denial of the substantive benefit on account of delay. The later amendment extending the filing time up to the end of the assessment year was also treated as supporting the directory character of the requirement. In a situation where competing non-jurisdictional views existed, the construction favourable to the assessee was preferred.

Conclusion: The delay in filing Form No. 67 did not justify denial of foreign tax credit, and the claim was held allowable in favour of the assessee.

Ratio Decidendi: Where a procedural rule governing the manner and time of furnishing Form No. 67 does not expressly attach a consequence of forfeiture, delayed compliance does not extinguish an otherwise admissible foreign tax credit.

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