Rule 128(9) not provide for disallowance of Foreign Tax Credit in case of delay in filing Form 67

Purushothama Reddy Vankireddy Vs ADIT (INTN Taxation) (ITAT Hyderabad)

Assessee contended that Rule 128(9) of the Rules does not provide for disallowance of Foreign Tax Credit (FTC) in case of delay in filing Form 67 and, therefore, it has consistently been held by various Benches of the Tribunal that filing of Form 67 is a directory requirement, but not a mandatory one inasmuch as Article 25(2)(a) of India-USA Double Taxation Avoidance Agreement (DTAA) vests a right in the assessee to claim the credit thereof.

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