TaxTMI 
TaxTMI 
2026 (9) TMI 1713
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....t") arising out of the rectification order dated 15.05.2024 passed under section 154 of the Act by the Centralised Processing Centre, Bengaluru (hereinafter referred to as "the CPC") for the assessment year 2021-22. 2. The Assessee has raised six grounds of appeal in Form No. 36. Ground 1 challenges the jurisdiction to make the adjustment while processing the return under section 143(1) of the Act. Grounds 2 and 5 assail the denial of relief of Rs 3,93,723 claimed under section 90 of the Act by way of foreign tax credit, though Form No. 67 had been filed. Grounds 3 and 4 assail the same denial on the ground that the CPC had itself computed that relief as allowable in Annexure FSI and Annexure TR. Ground 6 is general in nature. 3. Brie....
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....ho dismissed the appeal, holding at paragraph 6.3 of the impugned order as under: "...Rule 128(9) of the Income-tax Rules specifically mandates that Form No. 67 shall be furnished on or before the due date specified for furnishing the return of income under section 139(1). The language of the Rule is clear and unambiguous and leaves no scope for any discretion in the matter. Compliance with this requirement is not optional, but a statutory condition precedent for availing foreign tax credit." 6. He held at paragraph 6.12 that proceedings under section 154 of the Act "cannot be invoked to relax statutory conditions, condone delays, or grant relief contrary to the express provisions of law", relying at paragraphs 6.10 and 6.11 on ....
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....perused the material on record. The following facts are not in dispute. The assessee is a resident; he earned Rs 15,78,629 in the United States of America, paid tax of Rs 3,93,723 thereon in that country and offered that income to tax in India. Form No. 67 was furnished on 16.03.2022, after the extended due date of 31.12.2021 under section 139(1) of the Act but before the revised return and before the close of the assessment year 2021-22. The genuineness of the foreign income, of the tax paid abroad and of the quantum of the credit has not been doubted at any stage, and the sole reason for the denial is the belated furnishing of Form No. 67. 10. The question, therefore, is whether the time limit in rule 128(9) of the Rules is mandatory, ....
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....s on its breach, whereas here the Act prescribes no time limit and the rule attaches no consequence to a delay. Shivanand Electronics (supra) arose on a different provision. No judgment of the Hon'ble Supreme Court or of the Hon'ble jurisdictional High Court on rule 128(9) of the Rules has been brought to our notice, and nothing has been placed before us to show that the decisions followed above have been reversed, set aside or stayed. 13. Respectfully following the consistent view of the co-ordinate benches, we hold that the furnishing of Form No. 67 within the time stated in rule 128(9) of the Rules is directory, and that the credit available under section 90 of the Act cannot be denied merely because Form No. 67 was furnished after th....