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2024 (2) TMI 837 - AT - Income TaxEntitlement to foreign tax credit - assessee had filed Form 67 beyond the end of the relevant assessment year - violation of procedural norms - HELD THAT:- Admittedly in the instant case, the Form 67 was filed by the assessee before the AO before the due date prescribed u/s 139(4) of the Act. This issue is no longer res integra in view of the decision of the coordinate Bangalore Bench in the case of Brinda Ramakrishna Vs. ITO [2022 (2) TMI 752 - ITAT BANGALORE] On perusal of the Rule 128(9) of the Rules, it is nowhere provided that if the said Form 67 is not filed within the prescribed time, the relief as sought by the assessee u/s 90 of the Act would be denied. Either way the disallowance of FTC u/s 90 of the Act is not provided in the Act or in the Rules. Hence, it can be safely concluded that the intention of the legislature is not to deny the FTC merely on the ground that Form 67 was filed belatedly. This makes the filing of Form 67 a procedural requirement and hence to be construed only directional in nature and not mandatory. It is trite law that violation of procedural norms does not extinguish the substantive right of claiming the FTC credit. There are many sections in the Act which specifically deny deduction or exemption or relief in case the return/form is not filed within prescribed time limits such as sections 80AC, 80-1A(7), 10A(5) and 10A(5) etc, wherein there is specific provision for disallowance of deduction/exemption if audit report is not filed along with the return. We find that various Hon’ble High Courts have taken a view that filing of audit report is directory and not mandatory. Such language is not used in Rule 128(9) of the Rules. Therefore, such condition cannot be read into Rule 128(9) of the Rules. Assessee appeal allowed.
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