Denial of Foreign Tax Credit (FTC) u/ss 90/90A due to late...

Denial of Foreign Tax Credit (FTC) u/ss 90/90A due to late filing of Form 67 was challenged. As per rules, Form 67 should be filed along with the original return u/s 139(1). The issue was whether this provision is mandatory or directory. The court, relying on precedents, held that the filing requirement in Rule 128 for FTC is directory in nature, being a rule for implementing the Act's provisions. Even if FTC was filed after the original return but before the final assessment order, it should be allowed. Since FTC was filed before intimation u/s 143(1), the tax authority's rejection was improper and not in accordance with law. The decision was in favor of the assessee.