2025 (2) TMI 828

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..... ling Form No.67; (ii) filing of Form No.67 is not mandatory but a directory requirement and (iii) DTAA overrides the provisions of the Act and the Rules cannot be contrary to the Act. Thus we hereby direct the AO to allow the impugned credit of FTC to the assessee. Decided in favour of assessee.
Shri Challa Nagendra Prasad, Judicial Member And Shri Naveen Chandra, Accountant Member For the Assessee : Shri Ajay Gupta, CA For the Revenue : Shri Om Prakash, Sr. DR ORDER PER C.N. PRASAD, J.M. This appeal is filed by the assessee against the order under section 250 of the Income-tax Act, 1961 ("the Act") dated 06.12.2023 for the AY 2020-21 in denying Foreign Tax Credit claimed by the assessee under article 25(2)(a) of the India USA Doubl .....

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..... iples of law and equity. 5. The appellant respectfully reserves the right to add, amend, modify, or withdraw any of the above grounds of appeal before or during the hearing of the case." 2. Heard rival submissions. On reading of the orders of the authorities below we observed that the claim for Foreign Tax Credit was denied to the assessee for the reason that the assessee has filed Form 67 on 23.03.2022 on or after the extended due date of 10.01.2021 for filing return of income u/s 139(1) of the Act. The assessee filed revised return and claimed Foreign Tax Credit and also filed Form 67. Since the assessee filed Form 67 belatedly and not along with the return as specified under section 139(1) of the Act the claim for Foreign Tax Credit w .....

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..... counsel for the Assessee and hold that (i) Rule 128(9) of the Rules does not provide for disallowance of FTC in case of delay in filing Form No.67; (ii) filing of Form No.67 is not mandatory but a directory requirement and (iii) DTAA overrides the provisions of the Act and the Rules cannot be contrary to the Act. I am of the view that the issue was not debatable and there was only one view possible on the issue which is the view set out above. I am also of the view that the issue in the proceedings u/s. 154 of the Act, even if it involves long drawn process of reasoning, the answer to the question can be only one and in such circumstances, proceedings u/s. 154 of the Act, can be resorted to. Even otherwise the ground on which the revenue a .....

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