Sachin Shrikant Khedekar Vs ACIT (ITAT Mumbai)
ITAT Mumbai: Delay in Filing Form 67 Not Fatal-Foreign Tax Credit Cannot Be Denied on Technical Grounds
The Mumbai ITAT held that foreign tax credit (FTC) under Section 90 cannot be denied merely due to delay in filing Form 67, as such requirement is procedural and directory in nature.
In this case, the assessee had disclosed foreign income and claimed FTC in the return, but Form 67 was not filed within the prescribed time and was submitted later during rectification proceedings. The CPC and CIT(A) denied the credit solely on this ground.
The Tribunal observed that Rule 128(9) does not prescribe any adverse consequence for delayed filing, and procedural rules cannot override substantive rights under Section 90. It further relied on judicial precedents holding that filing of Form 67 is not mandatory if the claim is otherwise genuine.
Accordingly, the ITAT directed the AO to consider the FTC claim on merits after accepting Form 67, thereby allowing the appeal for statistical purposes and reinforcing that technical lapses should not defeat substantive tax relief.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The present appeal has been filed by the assessee against the impugned order dated 22/12/2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [“learned CIT(A)”], which in turn arose from the order dated 18/05/2023, passed under section 154, for the assessment year 2018-19.
