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2022 (12) TMI 1082 - AT - Income TaxForeign Tax Credit - Denial of deduction on the ground of belated filing of Form 67 - whether mere late fling of Form 67 would result incomplete denial of tax which has been deposited by the assesse in USA where services were rendered? - HELD THAT:- We have perused the Article 25 in the applicable DTAA between India and USA and also Rule 128 of the rules and provisions of Section 90(2) of the Act. Rule 128(9) of the rules provides that Form 67 should be filed on or before the due date of return of income however we also observe that the said Rule nowhere states that in case of late filing of Form 67 the credit of FTC which is deposited by the assesse in foreign country would be denied. In our considered view the FTC can not be denied to the assesse merely for late filing of Form 67 as the it is procedural formality on the part of the assesse.We have also perused the various decisions filed before us by assesse in defence of his argument that FTC cannot be denied merely on the basis of late filing of Form 67. We have perused the decision of Co-ordinate Bench of Bangalore in the case of M/s Brinda Rama Krishna [2022 (2) TMI 752 - ITAT BANGALORE] and find that similar issue has been decided in favour of the assessee. We also note that similar issue also has been decided [2022 (9) TMI 926 - ITAT JAIPUR] wherein the Co-ordinate Bench has allowed FTC by holding that the filing of form 67 is a procedural formality and could not the basis for denial of FTC to the assessee. Appeal of the assessee allowed.
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