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TMI Blog2024 (12) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the rule which does not provide for any consequence if not complied with. Therefore respectfully following the decisions of the coordinate bench on this issue we hold the assessee is eligible for foreign tax credit as she has filed form number 67 before completion of the assessment though not in accordance with rule 128 (9) of The Income Tax Rules which provided that such form shall be filed on or before the due date of filing of the return of income. Thus we hold that the assessee is eligible for foreign tax credit as he has filed a valid form number 67 for claiming FTC for the tax deducted at source on the salary received from SBI, Germany. Accordingly grounds of appeal raised by the assessee are allowed. - Shri Rajpal Yadav, Vice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e NFAC erred in law and facts of the case by upholding the enhancement of interest u/s 2348 and 234C of the Act, since once the foreign tax credit is given, there will no demand. 5) That the NFAC erred In not granting proper, sufficient and adequate opportunity of being heard to the Appellant while passing the appellate order, hence it is against the principles of natural justice. 6) That the appellant be allowed to add/alter/amend/delete either, all or any of the grounds of appeal either before or at the time of hearing. 3. At the outset, Ld counsel for the assessee submitted that the revenue authorities erred in not granting the Foreign Tax Credit (FTC) solely on account of for delay in furnishing Form 67. Referring to the decision of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of foreign tax credit for A Y 2019-20 AY 2020-21 for late filing of Form-67 is in dispute before us. The assessee earned income from Indonesia and claimed foreign tax credit. Except for the delayed uploading of Form-67 no other discrepancy has been noticed by the Revenue authorities for allowing of foreign tax credit. This issue has come for our consideration on various occasions and it has been consistently held that filing of Form-67 is directive in nature and not mandatory and therefore, just for the sake of delay in filing of Form-67, the assessee should not be denied the claim of foreign tax credit. In one of the decisions of this Tribunal in the case of Sobhan Lal Gangopadhyay Vs. ADIT [ITA No. 782/Kol/2022] relevant finding of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court was seized of the matter where in the same subsection twin conditions were mentioned the honourable High Court and lower appellate authorities considered one of the condition as mandatory and one of the condition as directory. He submitted that here section 90 or 91 does not lay down any condition of filing any form. The requirement of filing of the form is provided under rule 128 of The Income Tax Rules. Therefore here the situation is quite different. He submitted that these conditions have been considered by the coordinate bench in case of Brinda Ramakrishna. 012. We have carefully considered the rival contention and perused the orders of the lower authorities. Short question in this appeal is whether assessee is entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for disallowance of FTC in case of delay in filing Form No. 67. Same view is also taken by a coordinate division bench in Vinodkumar Laksbmipathi V CIT(A) NFAC ITA No.680/Bang/2022 06.09.2022. It is well settled that while laying down a particular procedure if no negative or adverse consequences are contemplated for non-adherence to such procedure the relevant provision is normally not taken to be mandatory and is considered to be purely directory. Admittedly Rule 128 does not prescribe denial of credit of FTC. Further the Act i.e. section 90 or 91 also do not prescribe timeline for filing of such declaration on or before due date of filing of ROI. Further rule 128 (4) clearly provides the condition where the foreign tax credit would not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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