Foreign tax credit cannot be denied for delayed Form 67 filing when treaty relief under section 90 remains substantively available.

Foreign tax credit under section 90 of the Income-tax Act, 1961, read with the applicable DTAA, cannot be denied solely because Form No. 67 was filed after the time prescribed in Rule 128(9) of the Income-tax Rules, 1962. The rule regulates the manner and timeline for furnishing the form, but it does not create a substantive bar or extinguish treaty-based relief for delayed filing. Where the taxpayer has paid tax abroad, offered the related income in India, and the relevant details are available for verification, the credit remains allowable. The delayed filing of Form No. 67 therefore did not justify denial of foreign tax credit, and the credit was directed to be granted in accordance with law.

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Issues: Whether foreign tax credit could be denied merely because Form No. 67 was filed after the due date prescribed under Rule 128(9) of the Income-tax Rules, 1962, notwithstanding the claim under section 90 of the Income-tax Act, 1961 and the applicable DTAA.

Analysis: The claim for foreign tax credit arose from tax paid abroad on income also offered to tax in India. The Court followed the view that Rule 128(9) is meant to regulate the manner of furnishing Form No. 67 and does not create a substantive disallowance for delayed filing. The credit under section 90 of the Income-tax Act, 1961, read with the treaty provision, is a substantive relief and cannot be defeated only by non-compliance with a procedural timeline, particularly when the form was eventually filed and the relevant details were available for verification.

Conclusion: The delayed filing of Form No. 67 did not justify denial of foreign tax credit. The assessee's claim was allowed and the Assessing Officer was directed to grant the credit in accordance with law and the applicable DTAA.

Ratio Decidendi: A procedural time limit for furnishing Form No. 67 does not extinguish the substantive entitlement to foreign tax credit where the treaty and section 90 confer the benefit and the rule does not expressly provide disallowance for delay.

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