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TMI Blog2024 (4) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... dural norms does not extinguish the substantive right of claiming the credit of FTC -direct the AO to allow the credit of FTC and hold that rule 128(9) of the Rules does not provide for disallowance FTC in case of delay filing of form 67 is not mandatory but a directory requirement and DTAA overrides the provisions of the Act and the Rules cannot be contrary to the Act. Thus restore the matter to the file of AO with direction to verify the assessee s claim in respect of foreign tax credit as per the provisions of the law after admitting / accepting form-67 and decide the issue in accordance with law. Grounds are allowed for statistical purposes. Assessee-appeal is allowed for statistical purposes. - SHRI KUL BHARAT, JUDICIAL MEMBER For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law and on fact in confirming the AO order dismissing the credit of Foreign Tax to assessee ignoring the fact that in assessment u/s 143(1) an addition can be made which is disputable in nature. 2. The solitary grievance of the assessee is with regard to disallowance of foreign tax credit amounting to Rs. 6,64,166/-. It is noticed that the CPC vide intimation u/s 143(1) of the Income-tax Act, 1961 (the Act ), disallowed the assessee s claim of foreign tax credit on the ground that in this case Form-67 was filed late along with the return, beyond the due date for filing the return u/s 139(1) of the Act. Aggrieved against it the assessee appealed to the learned CIT(A), who also affirmed the action of the CPC. Aggrieved against it the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hold that rule 128(9) of the Rules does not provide for disallowance FTC in case of delay filing of form 67 is not mandatory but a directory requirement and DTAA overrides the provisions of the Act and the Rules cannot be contrary to the Act. 5.2 It is also noticed that under similar facts and circumstances the ITAT Delhi Bench B in the case of Eastman Industries Ltd. vs. ACIT (supra) has adjudicated identical issue, observing as under: 7. Since in the present case the claim of the assessee was denied on this technical aspect without going into the merits of the FTC, therefore, we deem it fit to restore the issue to the files of the AO. The AO is directed to decide the claim of foreign tax credit as per the provisions of the law after a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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