Tribunal Allows Late Submission of Form No.67 for Foreign Tax Credit, Emphasizing Substance Over Procedure.

The Tribunal partially allowed the appeal, directing the CPC, Bangalore, to amend the Intimation under section 143(1) to consider the late-filed Form No.67 for the assessment year 2020-21. This decision emphasized the importance of substance over procedural technicalities, allowing credit for foreign tax paid despite the form's delayed submission.

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Issues Involved:
1. Denial of credit for foreign tax paid due to late filing of Form No.67.

Summary:
The appeal was filed against the order of National Faceless Appeal Centre, Delhi, regarding the denial of credit for foreign tax paid for the assessment year 2020-21. The appellant, an individual resident, had income from both USA and India. The Form No.67, necessary for claiming credit for foreign tax paid, was filed after the due date for filing the return of income. The CPC, Bangalore, denied the claim, leading to the appeal.

The main issue revolved around whether the CPC, Bangalore, was justified in denying the credit for foreign tax paid because Form No.67 was not filed within the due date specified under section 139(1) of the Income Tax Act, 1961. The appellant argued that the filing of Form No.67 within the due date was not mandatory but directory. Despite the late filing, the form was available to the CPC, Bangalore when processing the return. Therefore, the Tribunal directed the CPC to amend the Intimation under section 143(1) to consider the Form No.67 filed by the appellant, partially allowing the appeal.

In conclusion, the appeal was partly allowed, emphasizing the importance of considering the substance over technicalities in tax matters.

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