Section 90 of the Income Tax Act allows relief from double...

Section 90 of the Income Tax Act allows relief from double taxation by granting foreign tax credits (FTCs) on foreign income taxed in both India and the other country. The India-Sri Lanka DTAA mandates granting FTCs to avoid double taxation. Denying FTC due to a procedural delay in filing Form 67 goes against the DTAA's objective of mitigating double taxation. The assessee fulfilled the substantive requirement of paying taxes in Sri Lanka and subsequently claimed FTC as per DTAA u/s 90. Filing Form 67 during the rectification stage demonstrated a good faith effort to comply with procedural requirements. Courts and tribunals have held that procedural delays should not hinder substantive relief when the claimant has met other substantive requirements. As the assessee complied with substantive requirements and the objective of Section 90 and the DTAA is to mitigate double taxation, procedural technicalities should not compromise this objective when substantive compliance is evident. The assessee is entitled to FTC on foreign tax paid.