Lakshmi Sundararajan Vs DCIT (ITAT Chennai)
In Lakshmi Sundararajan v. DCIT, Chennai ITAT has ruled in favour of Assessee by allowing Foreign Tax Credit (FTC) despite a delay in filing Form 67.
Assessee had claimed FTC of ₹3,82,049 u/s 90/91, but AO denied it as Form 67 was filed on 21.09.2018-after the due date u/ 139(1) (31.08.2018). CIT(A) upheld the disallowance solely on the ground of late filing. Assessee’s appeal to ITAT was filed with a delay of 463 days, supported by an affidavit explaining the reasons. Tribunal found sufficient cause & condoned the delay.
On merits, ITAT noted that neither Sections 90/91 nor Rule 128(9) prescribe that delayed filing of Form 67 results in automatic denial of FTC. It followed its earlier rulings (Mrs. Venkatraman Lakshmi, Shri Prakash Varadarajulu) & the Mumbai ITAT decision in Sonakshi Sinha, holding that the requirement to file Form 67 before the due date is directory in nature. The Bench also observed that the amendment effective 01.04.2022 permits filing up to the end of the assessment year, indicating legislative intent against rigid timelines.
Since Form 67 had been filed before completion of the assessment, ITAT held that Assessee was entitled to FTC & directed the AO to grant the same.
