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

Delay in filing Form No. 67 did not by itself justify denial of foreign tax credit under section 90 read with rule 128(9). The Tribunal treated the form as a procedural requirement and held that belated filing could not defeat the assessee's substantive treaty-based entitlement to credit. It further recognised that the Double Taxation Avoidance Agreement prevails to the extent it is more beneficial, so the procedural rule could not override relief available under section 90. The claim for foreign tax credit was therefore sustained despite the delay, and the appeal was allowed.

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Issues: Whether delay in filing Form No. 67 could justify denial of foreign tax credit claimed under section 90 of the Income-tax Act, 1961 read with rule 128(9) of the Income-tax Rules, 1962.

Analysis: The assessee's claim for foreign tax credit was held to be covered by prior Tribunal decisions on the same issue. It was accepted that rule 128(9) does not authorise disallowance of foreign tax credit merely because Form No. 67 was filed belatedly. Filing of Form No. 67 was treated as a procedural requirement and not a mandatory condition defeating the substantive treaty-based entitlement. It was also held that the Double Taxation Avoidance Agreement prevails to the extent it is more beneficial, and the procedural rule cannot override the substantive relief available under section 90.

Conclusion: The delay in filing Form No. 67 did not disentitle the assessee from foreign tax credit, and the appeal was allowed.

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