Foreign Tax Credit Allowed Despite Delay in Form 67 – Procedural Lapse Not Fatal

Ganesh Vishwas Petkar Vs DCIT (ITAT Pune) The Pune ITAT held that delay in filing Form 67 cannot be a ground to deny Foreign Tax Credit (FTC), as the requirement is procedural and not mandatory. The assessee, a resident individual, earned dividend income from the USA and claimed FTC of ₹2.74 lakh under Section 90. The CPC denied the credit since Form 67 was filed belatedly (due to COVID-related delays), and the CIT(A) upheld this denial. The Tribunal observed that Rule 128(9) does not prescribe disallowance for delay, and filing of Form 67 is only a procedural compliance. Relying on similar ...