Foreign Tax Credit (FTC) admissible even if there is a delay in filing of Form 67

ITAT Pune in the case of Vipul Chandrakant Sawalwade v. ITO, ITA No. 659/PUN/2025, dated 13.05.2025 was dealing with the issue of allowability of Foreign Tax Credit (FTC) despite delayed filing of Form 67:

Let us have a Short Overview of the case:

Issue before ITAT:
Whether the denial of FTC by CPC, Bangalore is justified solely on the ground that Form No. 67 was filed after the due date of filing return under Section 139(1) of the Income Tax Act, 1961.

Facts:
The assessee filed Form No. 67 on 23.03.2020, which was after the due date prescribed under Section 139(1).
• The return was processed by CPC on 18.02.2021, and Form 67 was already available with the CPC at the time of processing.
• The FTC claim of Rs. 2,15,252/- was denied citing delay in Form 67 submission.

Ruling:
ITAT Pune held that mere delay in filing Form 67 should not result in denial of FTC when the form is available before processing of return.
• The requirement under Rule 128 to file Form 67 within the due date is directory, not mandatory.

The ITAT relied on:
• Madras High Court ruling in Duraiswamy Kumaraswamy v. PCIT (W.P. No. 5834/2022, dated 06.10.2023), holding Rule 128 as directory.
• ITAT Pune decision in Samiran Arunkumar Dutta v. DCIT (ITA No. 1195/PUN/2024, dated 14.08.2024), where FTC was allowed despite belated Form 67.

Held:
FTC cannot be denied merely because Form 67 was filed after the due date under Section 139(1), so long as:
• It was filed before return was processed and
• The claim is otherwise verifiable and genuine.
• The appeal was allowed, and CPC was directed to consider Form 67 and grant FTC after due verification.

The copy of the order is as under:

1747134401-pUsbFb-1-TO