Joel Eliah Pusanur Vs DCIT (ITAT Delhi)
Foreign Tax Credit Allowed Despite Delay in Filing Form 67; ITAT: Delay in Filing Form 67 is Procedural, Not Fatal to FTC Claim; Form 67 Filed Late Still Valid – ITAT Delhi Allows FTC to Non-Resident Assessee
Assessee, a non-resident, filed return declaring ₹1.28 crore & claimed foreign tax credit (FTC) of ₹12.38 lakh u/s 90/90A. CPC denied the claim as Form 67 was filed belatedly (on 19.04.2021) & raised tax demand. Rectification u/s 154 was rejected, & CIT(A) confirmed the disallowance.
Before Tribunal, Assessee argued that Form 67 was filed before completion of assessment & the delay was only procedural. It was contended that filing Form 67 before the due date is directory, not mandatory, relying on 42 Hertz Software India (P.) Ltd. [2022] 139 taxmann.com 448 (Bang.-Trib.), Brinda Ramakrishna [2022] 135 taxmann.com 358, & Wipro Ltd. (SC) distinction.
Tribunal noted that Rule 128(9) of the Income-tax Rules doesn’t prescribe any consequence for delay, nor do Sections 90 or 91 mandate a time limit. It held that once Form 67 is filed before assessment completion, FTC cannot be denied. The amendment effective from 01.04.2022 allowing filing up to the end of the assessment year further supports this liberal view.
