Foreign Tax Credit Cannot Be Denied for Delay in Form 67 – ITAT Remands for Verification

EIM Solutions India Pvt. Ltd. Vs DCIT (ITAT Bangalore) The Bangalore ITAT in the case of EIM Solutions India Pvt. Ltd. dealt with denial of Foreign Tax Credit (FTC) of ₹51.14 lakh under Section 90, solely due to belated filing of Form 67. The CPC and CIT(A) denied the claim treating Rule 128(9) as mandatory, holding that Form 67 must be filed within the due date of return u/s 139(1). However, the Tribunal observed that: The assessee had actually suffered foreign tax (Kenya) and filed Form 67 subsequently, Judicial precedents (including Madras High Court) consistently hold that delay in fili...