Pornprapha Pholdahan Vs ITO (ITAT Bangalore)
Bengaluru ITAT: Delay in Filing Form 67 Alone Cannot Defeat Foreign Tax Credit Claim
The Bengaluru ITAT held that foreign tax credit (FTC) cannot be denied merely because Form No. 67 was filed after the due date, where the assessee had claimed the credit in the original return of income. The assessee, a resident salaried individual, filed her return within the prescribed due date claiming foreign tax credit of ₹1.36 lakh under the applicable DTAA. However, Form No. 67 was filed subsequently, after the return had already been processed under section 143(1). Consequently, the Central Processing Centre denied the FTC while processing the return. The Tribunal observed that the CPC had acted correctly at that stage because Form No. 67 was not available when the return was processed.
The Tribunal, however, held that the substantive question was whether the assessee was otherwise entitled to foreign tax credit. Referring to judicial precedents, it observed that where Form No. 67 is filed subsequently and is available during the assessment or appellate proceedings, the benefit of foreign tax credit should not be denied solely on account of delayed filing of the form. Since the assessee had claimed the FTC in the return and had later furnished Form No. 67, the Tribunal directed the assessee to submit the form before the jurisdictional Assessing Officer, who was directed to verify the claim and grant the foreign tax credit in accordance with law if the assessee was otherwise eligible. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. This appeal is filed by the assessee, Pornprapha Pholdahan, against the appellate order passed by the Commissioner of Income Tax (Appeals), Aurangabad, dated 12 January 2026, for the assessment year 2018-19. By the said order, the appeal filed by the assessee against the intimation dated 28 February 2019 passed under section 143(1) of the Income Tax Act, 1961, was dismissed.
