TaxTMI 
TaxTMI 
2026 (10) TMI 415
X X X X Extracts X X X X
X X X X Extracts X X X X
....s within the extended period of limitation granted by the Hon'ble Supreme Court in In Re: Cognizance for Extension of Limitation on account of the COVID-19 pandemic. 3. The learned CIT(A) erred in denying the FTC for alleged non-compliance with Rule 128(9), without appreciating that the 3 amendments to Rule 128(9) with effect from 01.04.2022, being declaratory and curative in nature, warrants retrospective application 4. The learned CIT(A) erred in denying the substantive entitlement to FTC under Section 90 read with Article 24(4)(a) 4 of the India-Australia DTAA on account of non-compliance with a procedural requirement prescribed under Rule 128, which cannot override or curtail the substantive provisions of the Act or the DTAA 5. The learned CIT(A) erred in treating the requirement of filing Form No. 67 within the time prescribed under Rule 128(9) as mandatory, notwithstanding that the said Rule does not provide for denial of FTC as a consequence of delayed filing of Form No. 67 and is therefore directory in nature. 6. The Appellant craves leave to add, alter, amend or modify any of the above grounds of appeal at or before the time of heari....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed territory outside India, - (a) for the granting of relief in respect of- (i) income on which have been paid both INCOME-TAX under this Act and INCOME-TAX in that country or specified territory, as the case may be, or (ii) INCOME-TAX chargeable under this Act and under the corresponding law in force in that country or specified territory, as the case may be, to promote mutual economic relations, trade and investment, or (b) for the avoidance of double taxation of income under this Act and under the corresponding law in force in that country or specified territory, as the case may be, without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in the said agreement for the indirect benefit to residents of any other country or territory), or (c) for exchange of information for the prevention of evasion or avoidance of INCOME-TAX chargeable under this Act or under the corresponding law in force in that country or specified territory, as the case may be, or investigation of cases of such evasion or avoidance, or ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion (1) and not defined under the said agreement or the Act, but is assigned a meaning to it in the notification issued under sub-section (3) and the notification issued thereunder being in force, then, the meaning assigned to such term shall be deemed to have effect from the date on which the said agreement came into force. Explanation 4. -For the removal of doubts, it is hereby declared that where any term used in an agreement entered into under sub-section (1) is defined under the said agreement, the said term shall have the same meaning as assigned to it in the agreement; and where the term is not defined in the said agreement, but defined in the Act, it shall have the same meaning as assigned to it in the Act and explanation, if any, given to it by the Central Government. Foreign Tax Credit. 128. (1) An assessee, being a resident shall be allowed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, in the manner and to the extent as specified in this rule....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l be determined by conversion of the currency of payment of foreign tax at the telegraphic transfer buying rate on the last day of the month immediately preceding the month in which such tax has been paid or deducted. (6) In a case where any tax is payable under the provisions of section 115JB or section 115JC, the credit of foreign tax shall be allowed against such tax in the same manner as is allowable against any tax payable under the provisions of the Act other than the provisions of the said sections (hereafter referred to as the "normal provisions"). (7) Where the amount of foreign tax credit available against the tax payable under the provisions of section 115JB or section 115JC exceeds the amount of tax credit available against the normal provisions, then while computing the amount of credit under section 115JAA or section 115JD in respect of the taxes paid under section 115JB or section 115JC, as the case may be, such excess shall be ignored. (8) Credit of any foreign tax shall be allowed on furnishing the following documents by the assessee, namely: (i) a statement of income from the country or specified territory outside India offered ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 5. In view of the above provisions of the Act and Rules, the assessee is entitled to file the return u/s. 139(4) also, i.e., belated return. In this case due date of filing the return as extended by the CBDT was 31.12.2021, whereas the assessee filed the return on 21.03.2022. It is observed that the due date u/s. 139(1) of the Act became the due date as prescribed in section 139(4) of the Act, looking at the peculiar situation prevailing in the country. Moreover, there is no issue w.r.t. the entitlement, quantum and formalities to be completed by the assessee. Based on the facts above, we further relied upon the decision of the Hon'ble Jurisdictional High Court in the case of [2025] 174 taxmann.com 754 (Mad.) Venkatanarayanan Somayaji Lakshminarasimha v. PCIT, wherein the Hon'ble High Court has held as under: "As rightly contended by the assessee the delay in filing the Form 67 is only the procedural lapse. That apart the Madras High Court in the case of Duraiswamy Kumaraswamy v. Pr. CIT [2023] 156 taxmann.com 445/296 Taxman 502/460 ITR 615. has observed that rule 128 is not mandatory but to be considered as directory in nature. [Para 6] ■ In the light ....