Foreign Tax Credit remains available when delayed Form No. 67 filing is merely procedural and foreign taxes were paid.

Foreign Tax Credit cannot be denied solely because Form No. 67 was filed late where foreign taxes were otherwise paid. Rule 128(9) of the Income-tax Rules is treated as directory, not mandatory, because it prescribes no penalty or disallowance for delayed filing. The applicable Double Taxation Avoidance Agreement provision governing credit for foreign taxes paid prevails over this domestic procedural requirement. Accordingly, delayed compliance with the Form No. 67 filing requirement does not by itself defeat entitlement to Foreign Tax Credit.

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Issues: Whether Foreign Tax Credit can be denied solely because Form No. 67 was filed belatedly.

Analysis: Rule 128(9) of the Income-tax Rules, 1962 was treated as directory rather than mandatory, as it does not prescribe a penal consequence or disallowance for delayed filing of Form No. 67. The applicable Double Taxation Avoidance Agreement provision governing credit for foreign taxes paid prevails over the domestic procedural requirement, and Foreign Tax Credit cannot be denied for such a procedural delay where the foreign taxes were otherwise paid.

Conclusion: Foreign Tax Credit cannot be denied solely on account of belated filing of Form No. 67, and credit for taxes paid in the foreign jurisdiction is allowable.

Ratio Decidendi: A procedural time requirement for filing Form No. 67 is directory, and Foreign Tax Credit available under the applicable Double Taxation Avoidance Agreement cannot be denied solely for delayed compliance with that requirement.

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