TaxTMI 
TaxTMI 
2026 (9) TMI 1447
X X X X Extracts X X X X
X X X X Extracts X X X X
....n both the appeals, hence, we have heard both the appeals together and are being disposed of by this common order for the sake of brevity by dealing with ITA No. 3663/Del/2026 (AY 2019-20). ITA No. 3663/Del/2026 (AY 2019-20) 2. The assessee has raised the following grounds of appeal: 1. That on the facts and circumstances of the case and in law, the order dated 13.01.2026 passed by the Commissioner of Income Tax (Appeals) ("CIT(A)") under section 250 of the Income-tax Act, 1961 ("the Act") upholding the action of assessing officer (CPC, Banglore) in disallowing the foreign tax credit for Rs. 29,43,093 is bad in law and liable to be quashed. 2. That the Ld. CIT(A) has erred in law and on facts in passing the impugned ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Foreign Tax Credit, without appreciating that such requirement is procedural in nature and cannot defeat the substantive right of relief under section 90 read with applicable DTAA. 9. That the Ld. CIT(A) has erred in treating Rule 128(9) as mandatory and in denying the claim solely on account of delay in filing Form 67, ignoring settled legal position that procedural provisions cannot override substantive benefits. 10. That the Ld. CIT(A) has failed to appreciate that the appellant had duly paid taxes in the foreign jurisdiction and had disclosed the same in the return of income, thereby entitling the appellant to Foreign Tax Credit. 11. That the Ld. CIT(A) has erred in law in not appreciating that CBDT Circular ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... well as AO did not give the benefit of Foreign Tax Credit. In this regard, Ld. AR has placed reliance on several judicial pronouncements in support of his contentions. In particular, he has relied upon the latest decision dated 18.3.2026 of the Coordinate Bench of this Tribunal in the case of Nitin Khurana vs. ITO in ITA No. 5264/Del/2025 (AY 2023-24) wherein, on identical facts and circumstances, the appeal of the assessee was allowed. 6. Ld. DR relied upon the orders of the authorities below. 7. We have heard the rival submissions and perused the material placed on record. Admittedly, the assessee has filed Form No. 67 on the date of filing of the return i.e. 30.9.2020,which was treated by the AO as 'belated', however, the same is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t Rai, learned Senior Standing Counsel for the Income Tax Department, on the other hand, submitted that the petitioner has failed to adhere to the mandate of law and since there is no provision granting relaxation under Rule 128 of the Rules of 1962, the Commissioner has rightly rejected the application for revision. He further submitted that the power to relax the Rule may be exercised by the Central Board of Direct Taxes or a competent authority under Section 119 of the Act of 1961, that too in a case when such power is invoked. 6. Heard learned counsel for the parties. 7. Admittedly, the petitioner has not furnished Form No. 67 up to the due date of filing return and it realised such fault only when its return was proce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me would be an empty formality. 10. Concededly, the petitioner has subsequently furnished Form No. 67 on 14.09.2022. While exercising writ jurisdiction, we hereby direct the AO that in case the same has been furnished, he shall allow Foreign Tax Credit after verifying the facts in accordance with law. However, in case the AO is of the view that the Foreign Tax Credit cannot be allowed to the petitioner, he shall pass a speaking order, against which the petitioner's right to take remedies in accordance with law shall remain reserved." 5. We have heard the rival submissions and perused the material placed on record. Admittedly, the assessee has filed Form No. 67 belatedly which is a procedural defect. It is the settled l....