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2022 (10) TMI 1033 - AT - Income TaxForeign Tax Credit (FTC)) u/s 90 - delay in filling Form 67 - As per NFAC filing of form No.67 before the due date of filing return of income u/s.139(1) of the Act was mandatory and failure to do so will result in FTC not being allowed - HELD THAT:- The said issue under consideration is no longer res integra. We note that on identical issue, the Co-ordinate Bench of ITAT, Bangalore in the case of Brinda Rama Krishna [2022 (2) TMI 752 - ITAT BANGALORE] held 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. Therefore, non-furnishing of Form No.67 before the due date u/s 139(1) of the Act is not fatal to the claim for FTC The assessee is entitled to FTC and the AO is directed to allow the claim. The decision rendered in MURALIKRISHNA VADDI, VISAKHAPATNAM case [2022 (6) TMI 693 - ITAT VISAKHAPATNAM] is distinguishable in as much as in the present case, Form No.67 was filed along with the return of income by the assessee and not after the commencement of the scrutiny proceedings by the AO after a delay of more than 2 years, as was the facts in the case decided. We are therefore of the view that the said decision rendered by the Visakapatnam Bench is not applicable to the facts of the present case and the other decisions taking a view in favour of the assessee are applicable. The said decision also does not consider the effect of DTAA and Sec.90 of the Act, vis-à-vis the provisions of Rule 128(9) of the Rules and as to whether the Rules can override the Act. Therefore, we hold that the assessee is entitled to FTC and the AO is directed to allow the same. - Decided in favour of assessee.
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