AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 838
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....d the circumstances of the case and in law, the respected Appellate Authority erred in holding that form 67 was not filed at all by the Appellant though the same was filed during the rectification proceedings and which is the sole basis for dismissing the appeal petition of the appellant. 3. On the facts and the circumstances of the case and in law, the respected Appellate authority failed to appreciate that the facts and issue raised for adjudication are squarely covered by the rulings cited in appeal proceedings including ruling of jurisdictional Honourable Tribunal & thereby erred in the dismissing the appeal petition of the appellant. 4. The appellant craves a leave to add, alter and/or modify any of the grounds of appeal on or before the date of hearing of appeal". 3. The solitary grievance of the assessee is against the denial of foreign tax credit under section 90 of the Act due to the delay in filing Form No. 67. 4. The brief facts of the case as emanating from the record are: The assessee is a film artist and earns income from professional activities. For the year under consideration, the assessee filed his return of income on 06/10/2018, declaring ....
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.... 6. On the contrary, the learned Departmental Representative ('learned DR') vehemently relied upon the order passed by the learned CIT(A) and submitted that the provisions of Rule 128 of the Rules are mandatory in nature. 7. We have considered the rival submissions and perused the material available on record. In the present case, the assessee filed his return of income on 06/10/2018. In his return of income, the assessee claimed credit of foreign tax paid under section 90 of the Act. The ADIT, CPC, Bengaluru, while processing the return of income vide intimation issued under section 143(1) of the Act, denied the foreign tax credit of Rs. 5,36,896, claimed by the assessee under section 90 of the Act. Thereafter, the assessee filed Form No. 67 and a rectification application under section 154 of the Act for claiming the foreign tax credit. Vide order dated 18/05/2023, the rectification application was disposed off without granting any relief to the assessee in respect of the issue involved. In the impugned order, it has been held that Form No. 67 was not at all filed by the assessee, as per the provisions of Rule 128(9) of the Rules, and thus the claim of the assessee was reje....
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....ar in which the income referred to in sub-rule (1) has been offered to tax or assessed to tax in India and the return for such assessment year has been furnished within the time specified under sub-section (1) or sub-section (4) of section 139:" 10. Thus, with effect from 01/04/2022, the time period for furnishing a statement in Form No. 67 has been extended till the end of the assessment year in which the corresponding income has been offered/assessed to tax and the return of such assessment year has been furnished within the time specified under 139(1) or 139(4) of the Act. 11. We find that the coordinate bench of the Tribunal in Sonakshi Sinha vs CIT, reported in [2022] 142 taxmann.com 414 (Mum-Trib.), while dealing with a similar issue wherein the taxpayer filed Form No.67, after the due date for filing the return of income under section 139(1), observed as follows: - "012. We have carefully considered the rival contention and perused the orders of the lower authorities. Short question In this appeal is whether assessee is entitled to foreign tax credit even when form number 67 required to be filed according to the provisions of rule 128 (9) of the Income Tax Rul....
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.... on or before the end of the assessment year. Therefore, legislature in its own wisdom has extended such date which is beyond the due date of filing of the return of income. Further, the fact in the present case is quite distinct then the issue involved in the decision of the honourable Supreme Court in case of Wipro Ltd (supra). Here it is not the case of violation of any of the provisions of the act but of the rule, which does not provide for any consequence, if not complied with. Therefore, respectfully following the decisions of the coordinate bench on this issue, we hold the assessee is eligible for foreign tax credit, as she has filed form number 67 before completion of the assessment, though not in accordance with rule 128 (9) of The Income Tax Rules, which provided that such form shall be filed on or before the due date of filing of the return of income. Accordingly, ground number 2 of the appeal of the assessee is allowed." 12. We further find that the Hon'ble Madras High Court in Venkatanarayanan Somayaji Lakshminarasimha vs. PCIT, reported in [2025] 174 taxmann.com 754 (Madras), held that delay in filing Form No. 67 is only a procedural lapse which can be condoned and....
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....rectory in nature, that too before the Assessment, the claim to avail the benefits of FTC is filed. Therefore, it would be the amounts to due compliance under the Act. The petitioner referred to the Judgment of the Hon'ble Supreme Court in the case of Commissioner of Income- Tax, Maharashtra v. G.M.Knitting Industries (P) Limited in Civil Appeal Nos.10782 of 2013 and 4048 of 2014 dated 24.06.2015, wherein it was held that Form 3AA is required to be filed along with the return of income to avail the benefit and even if it is not filed, but the same is filed during assessment proceedings but before the final order of assessment is made that would amount to sufficient compliance. 11.The law laid down by the Hon'ble Apex Court in Commissioner of Income-Tax, Maharashtra v. G.M.Knitting Industries (P) Limited in Civil Appeal Nos.10782 of 2013 and 4048 of 2014 dated 24.06.2015, which was referred above, would be squarely applicable to the present case. In the present case, the returns were filed without FTC, however the same was filed before passing of the final assessment order. The filing of FTC in terms of the Rule 128 is only directory in nature. The rule is only for ....