Non-Furnishing of Form No.67 before Due Date u/s 139(1) not Fatal to Claim Foreign Tax Credit: ITAT [Read Order]
Non-Furnishing of Form 67 Before Due Date Not Fatal to Foreign Tax Credit Claim: ITAT Jaipur Rules in Favour of Assessee
![Non-Furnishing of Form No.67 before Due Date u/s 139(1) not Fatal to Claim Foreign Tax Credit: ITAT [Read Order] Non-Furnishing of Form No.67 before Due Date u/s 139(1) not Fatal to Claim Foreign Tax Credit: ITAT [Read Order]](https://images.taxscan.in/h-upload/2025/08/13/2076407-non-furnishing-foreign-tax-credit-itat-taxscan.webp)
The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) has held that the failure to furnish Form No. 67 before the due date prescribed under Section 139(1) of the Income Tax Act does not automatically disentitle an assessee from claiming Foreign Tax Credit (FTC).
The case involved a salaried employee of Credit Suisse Business Analytics, who worked in the USA before being deputed to India in September 2021. For the assessment year 2022-23, Singh reported global income of ₹81.37 lakh comprising ₹35.58 lakh from the Indian entity and ₹42.89 lakh from the US entity and claimed FTC of ₹4.86 lakh under the Double Taxation Avoidance Agreement (DTAA) between India and the USA.
The Centralised Processing Centre (CPC), Bengaluru, denied the claim on the ground that Singh had not filed Form 67, a requirement under Rule 128 for FTC claims before the due date for filing his return under Section 139(1). The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the disallowance, taking note of CBDT Notification No. 9/2017 that mandated the timely online submission of Form 67.
The AR of the assessee filed on a detailed paper book in support of the contention so raised in the written submission.
The AR of the assessee in addition to the above submission vehemently argued that the ld. CIT(A) has not granted the relief to the assessee merely on account of the fact that Form No. 67 was not submitted well within the due date specified for furnishing the return of income under sub-section (1) of Section 139 of the Act. Thus, non-furnishing of Form No.67 before the due date under section 139(1) is not fatal to claim for foreign tax credit.
On the other hand, the DR supported the order of the CIT(A) recorded at para 4.9 of the order. Ld. DR also submitted that case law relied in the case of Shri Ritesh Kumar being the SMC case do support the binding precedent to the division bench.
The Jaipur Bench, comprising Dr. S. Seethalakshmi (Judicial Member) and Shri Rathod Kamlesh Jayantbhai (Accountant Member), agreed with Singh. Referring to its earlier rulings in Juan Miguel Guerrero Ferrer v. DCIT and Rajesh Kumar Lakhran v. ITO, the Tribunal reiterated that neither Section 90 nor the DTAA stipulates that late filing of Form 67 would nullify an FTC claim. Rule 128, the bench observed, is procedural and cannot override substantive treaty rights.
The Tribunal further drew on Supreme Court precedents in Mangalore Chemicals & Fertilizers Ltd. and Sambhaji & Ors. v. Gangabai & Ors., emphasising that procedural laws are meant to aid justice, not obstruct it.
In result, the bench of Dr. S. Seethalakshmi, Judicial Member and Rathod Kamlesh Jayantbhai, Accountant Member directed the Assessing Officer to allow Singh’s FTC claim based on the ITR and Form 67 already on record, setting aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)].
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