FTC Cannot Be Denied for Late Form 67: Substantive Right Prevails

John Kishore Vs DCIT (ITAT Chennai) The issue before the ITAT Chennai was whether Foreign Tax Credit (FTC) can be denied merely because Form 67 was not filed within the due date prescribed under Rule 128(9). The assessee, who was deputed to Germany, had claimed FTC of ₹5.73 lakh in the return. However, CPC denied the credit during processing u/s 143(1) solely due to non-filing of Form 67 within time. Though the assessee later filed Form 67 and supporting documents, rectification was rejected and the CIT(A) upheld denial treating the requirement as mandatory. The Tribunal disagreed with this ...