Belated Filing of Form 67 not a Ground to Deny Tax Credit: ITAT directs CIT(A) to allow FTC

Belated Filing of Form 67 Not a Ground to Deny Tax Credit: The Income Tax Appellate Tribunal (ITAT) has ruled that belated filing of Form 67 should not be a ground to deny foreign tax credit (FTC) claims. In this case, the petitioner had filed Form 67 late, which led the tax authorities to reject their claim for FTC under section 91 of the Income Tax Act. The ITAT, however, directed the tax department to allow the FTC claim, as the delay in filing did not invalidate the taxpayer’s eligibility. The ruling emphasizes the importance of allowing genuine claims even when procedural lapses occur, as long as the taxpayer has complied with the substance of the law. This decision will have significant implications for future FTC claims.