Preeti Das Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) Pune ruled in favor of Preeti Das, allowing her Foreign Tax Credit (FTC) claim despite the late filing of Form 67. Das, an Indian resident employed with Microsoft Global Services, had worked in the U.S. on an international assignment and later filed a revised tax return for AY 2019-20, claiming FTC of ₹7,34,421 under Section 90(2) of the Income Tax Act. However, the Centralized Processing Center (CPC) in Bangalore denied the FTC claim, citing the late submission of Form 67. Both the rectification petition under Section 154 and the subsequent appeal before the National Faceless Appeal Centre (NFAC) were rejected, reinforcing the view that Form 67 must be filed before the due date under Section 139(1).
Upon appeal, ITAT Pune examined prior case rulings and determined that the requirement to file Form 67 before the tax return deadline is only directory, not mandatory. The tribunal cited precedents from the Madras High Court and its own earlier rulings, noting that similar claims had been allowed despite delayed Form 67 submissions. Since the form was available when CPC processed the return, ITAT ruled that FTC should not be denied solely on timing grounds. The tribunal directed the jurisdictional assessing officer to allow the tax credit after verification, setting a precedent for similar cases.
