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2024 (1) TMI 787 - AT - Income TaxDenial of foreign tax credit (FTC) - rule is directory or mandatory? - assessee has filed the Form No. 67 beyond the due date and after processing of return of income U/sec 143(1) - Assessee has filed Form No 67 online on the portal of the Income Tax Department on 6.07.2022 in order to comply with Rule 128 of Income Tax Rules - HELD THAT:- We find under Section 90 of the income tax Act allows double taxation relief in respect of agreements with foreign countries or specified territories and also Section 91 o the I T Act deals with the taxability of income where the countries which don’t have agreements. Further there is no amendment in the Section 90 of the Act with regard to claim of FTC and in such cases Rule procedures are directory and not mandatory. As decided in the case of Ms. Brindra Rama Krishna, [2022 (2) TMI 752 - ITAT BANGALORE] Hon'ble Tribunal has observed that the filling of Form No.67 is not mandatory but directory There is no amendment on these aspects in the Section 90 of the Act and the Rules cannot override the Act and therefore the filing of Form.No 67 is not mandatory but it is directory. Accordingly, we considering the facts, circumstances and ratio of the judicial decisions restore the disputed issue for limited purpose to the file of the assessing officer to grant Foreign Tax Credit after verification and in accordance with the law. Further the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information and allow the grounds of appeal of the assessee for statistical purposes.
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