Foreign tax credit allowed despite delayed Form 67 filing, as the due-date requirement was treated as directory.

Foreign tax credit could not be denied merely because Form 67 was filed after the return due date. The Tribunal treated Rule 128(9)'s time limit for filing Form 67 as directory rather than mandatory, and held that the DTAA read with section 90(2) supported allowance of the credit. Relying on prior judicial decisions, it accepted that Form 67 may be filed before completion of assessment for claiming foreign tax credit. The assessee was therefore entitled to the credit despite delayed filing of Form 67.

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Issues: Whether the assessee could be denied foreign tax credit merely because Form 67 was filed after the due date for filing the return of income.

Analysis: The Tribunal followed the view that the requirement in Rule 128(9) for filing Form 67 within the due date is directory and not mandatory. It noted that the Double Taxation Avoidance Agreement, as made applicable through section 90(2) of the Income-tax Act, 1961, supports allowance of the foreign tax credit, and relied on prior judicial decisions holding that Form 67 may be filed before completion of assessment for claiming the credit.

Conclusion: The assessee was entitled to foreign tax credit despite delayed filing of Form 67.

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