TaxTMI 
TaxTMI 
2026 (7) TMI 414
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....") amounting to Rs. 2,76,317 in respect of taxes paid in Germany. The authorities below have declined the claim solely on the ground that Form No.67, prescribed under Rule 128 of the Income Tax Rules, 1962, was furnished after the processing of the return under section 143(1) of the Act. Thus, the core issue which falls for our consideration is whether delayed filing of Form No.67, despite there being no dispute regarding payment of foreign taxes and inclusion of the corresponding income in the total income chargeable to tax in India, can by itself disentitle the assessee from availing the substantive benefit of Foreign Tax Credit under section 90 of the Act read with Article 23 of the Double Taxation Avoidance Agreement between India and G....
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....m No.67, salary details, foreign tax particulars and other supporting documents. It was specifically explained that Form No.67 had been electronically furnished on 20.03.2021 and all the material particulars relating to the foreign income as well as taxes paid outside India were fully available on record. It was contended that delayed filing of Form No.67 was merely a procedural lapse and could not defeat the substantive right of claiming Foreign Tax Credit conferred under section 90 of the Act and Article 23 of the India-Germany DTAA. Reliance was also placed upon various judicial precedents holding that filing of Form No.67 is directory in nature. 6. The learned CIT(A.), however, was not persuaded to accept the assessee's contention. T....
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.... given in the impugned order and submitted that Rule 128 specifically requires furnishing of Form No.67 within the prescribed time. Since the assessee admittedly furnished the said form after the intimation under section 143(1), the authorities below were justified in denying the claim of Foreign Tax Credit. 9. We have thoughtfully considered the rival submissions and carefully perused the material available on record. The facts giving rise to the controversy are largely undisputed. It is not the case of the Revenue that the foreign income earned by the assessee in Germany has not been offered to tax in India. Likewise, there is no dispute regarding the payment of foreign taxes amounting to Rs. 2,76,317 in Germany, nor has the authentici....
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....ncome in the total income chargeable to tax in India, the procedural requirement of filing Form No.67 cannot be construed so rigidly as to defeat the very relief against double taxation which section 90 seeks to provide. 11. The learned CIT(A.) has upheld the denial of Foreign Tax Credit by distinguishing the judicial precedents relied upon by the assessee on the ground that in those cases Form No.67 had been furnished before completion of the assessment, whereas in the present case it was furnished after processing of the return under section 143(1). In our considered opinion, such distinction is more apparent than real and does not alter the legal position. The decisive factor is not the stage at which Form No.67 was furnished but whet....