Soumik Chatterjee Vs ITO (ITAT Kolkata)
Substance Over Procedure—FTC Can’t Be Denied for Technical Delay- Foreign Tax Credit Allowed Despite Delayed Form 67
Kolkata ITAT ‘SMC’ Bench in Soumik Chatterjee vs ITO, Ward-33(2), Kolkata (ITA No.1508/Kol/2025, AY 2024-25, order dated 23-12-2025) allowed the assessee’s appeal and directed grant of foreign tax credit (FTC), holding that mere delay in filing Form 67 cannot be a ground to deny relief u/s 90/90A
Assessee filed return on 31-07-2024, which was later revised on 28-08-2024. He claimed foreign tax credit relating to income accrued in Canada, where tax of ₹2.20 lakh had been paid. Form 67, however, was filed later on 30-01-2025. CPC/CIT(A) denied FTC solely on the ground that Form 67 was not filed within the due date prescribed under Rule 128.
ITAT noted that:
• Rule 128 prescribes the procedure, but nowhere provides that delayed filing of Form 67 results in forfeiture of FTC
• Section 90 grants substantive relief, which cannot be defeated by a procedural lapse
• The issue is squarely covered by coordinate-bench decisions, including Mahua Bagchi vs ACIT, Atanu Mukherjee vs ITO and Sobhan Lal Gangopadhyay vs ADIT, where FTC was allowed despite belated Form 67
Tribunal held that late filing of Form 67 is a technical defect and not fatal, and that foreign tax credit, once otherwise admissible, cannot be denied on such hyper-technical grounds. Accordingly, ITAT set aside the order of CIT(A) and directed the AO to allow FTC.
Key takeaway
Foreign tax credit is a substantive right under DTAA. Delay in filing Form 67 is only a procedural lapse and cannot override section 90 relief—a consistent line of ITAT decisions reaffirmed yet again.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
