Foreign tax credit filing delay is procedural, not fatal, where late Form 67 does not extinguish substantive entitlement.

Foreign tax credit under the treaty-based relief framework could not be denied solely because Form No. 67 was filed after the due date for the return. The filing requirement was treated as procedural and directory, since the rule did not expressly state that late filing extinguished the substantive credit. The assessee's entitlement was therefore to be examined on verification of the form already filed, and credit was to be allowed on due verification.

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Issues: Whether foreign tax credit could be denied merely because Form No. 67 was filed after the due date for filing the return of income.

Analysis: The claim for foreign tax credit arose under the treaty-based relief mechanism and the statutory framework governing relief for taxes paid outside India. The relevant rule required Form No. 67 to be furnished by the due date under section 139(1), but the provision did not expressly state that late filing would extinguish the underlying credit. Following the co-ordinate Bench view, the filing requirement was treated as procedural and directory, not mandatory, and delay in furnishing Form No. 67 was held not to be fatal to the claim. The claim was therefore directed to be examined on verification of the form already filed.

Conclusion: Foreign tax credit could not be denied solely for delay in filing Form No. 67, and the assessee was entitled to credit on due verification.

Ratio Decidendi: A procedural filing requirement for claiming foreign tax credit does not, by itself, defeat the substantive treaty-backed entitlement unless the statute or rule expressly provides disallowance for non-compliance.

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