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Issues: Whether foreign tax credit could be denied at the processing stage solely because Form No. 67 was filed after the return was processed, and whether the assessee should be allowed to substantiate the claim before the Assessing Officer.
Analysis: The assessee claimed foreign tax credit in the return, but Form No. 67 supporting the claim was filed later and was not available when the return was processed under section 143(1) of the Income-tax Act, 1961. At that stage, the processing authority could not have acted on supporting particulars that were not on record. However, the claim itself related to relief under section 90 of the Income-tax Act, 1961, and the subsequent filing of Form No. 67 meant the claim could not be rejected merely on the ground of delay without verification of eligibility. The proper course was to examine the form and supporting material on merits.
Conclusion: The denial of foreign tax credit at the processing stage was upheld, but the assessee was permitted to place Form No. 67 before the jurisdictional Assessing Officer for examination and grant of credit, if otherwise eligible.
Final Conclusion: The appeal succeeded only to the extent of enabling fresh verification of the foreign tax credit claim, and the matter was sent back for consideration on merits.
Ratio Decidendi: A foreign tax credit claim cannot be permanently denied merely because Form No. 67 was not available at the time of processing, where the assessee subsequently produces the form and the claim remains open to verification under the relevant relief provisions.
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