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2022 (2) TMI 752 - AT - Income TaxRectification of mistake u/s 154 - allowability of Foreign Tax Credit - Assessee from Australia has a global income as taxable in India - Assessee offered to tax salary income earned for services rendered in Australia for the period from December 2017 to March 2018 to tax in India and claimed foreign tax credit ("FTC") for taxes paid in Australia - India Australia DTAA - HELD THAT:- We agree with the contentions put forth by the learned 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. - the issue was not debatable and there was only one view possible on the issue which is the view set out above. 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 authorities rejected the Assessee’s application u/s.154 of the Act was not on the ground that the issue was debatable but on merits. therefore do not agree with the submission of the learned DR in this regard. Assessee appeal allowed.
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