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TMI Blog2023 (5) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... al is that the foreign tax paid by him has not been given credit to, on the ground that the assessee furnished the statement in Form 67 with a delay. In this case, the assessee filed the return of income on 24/07/2019 whereas the due date was on 31/08/2019, but filed Form No. 67 on 26/10/2020. Foreign Tax Credit (FTC) was, therefore, denied. So also the rectification request made under section 154 of the Income Tax Act, 1961 (for short "the Act") was dismissed. 3. Learned CIT(A) also recorded that the due date for filing the return under section 139(1) of the Act was 31/08/2019 and in accordance with Rule 128 of Income Tax Rules, 1962 (for shortthe Rules"), in order to claim FTC, the mandatory requirement is that the taxpayer has to file t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that it is not mandatory requirement. She placed reliance on the view taken by the Visakhapatnam Bench of the Tribunal in the case of Murali Krishna Vaddi Vs. ACIT (2022) 142 taxmann.com 32. 6. We have gone through the record in the light of the submissions made on either side. It could be seen from the view taken in Murali Krishna Vaddi (supra), the decision of the Bangalore Tribunal in the case of M/s. 42 Hertz Software India (P) Ltd (supra), was brought to the notice of the Bench, but looking at the abnormal delay of more than two years without any valid and reasonable cause, the Bench held that such delayed filing of Form 67 was in compliance with Rule 128(9) of the Rules. 7. Coming to the decisions relied upon by the assessee it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d down in conformity thereof. Rule 128(9) of the Rules cannot be read in isolation. Rules must be read in the context of the Act and the DTAA impacting the rights, liabilities and disabilities of the parties. 9. With this view of the matter, we are of the considered opinion that the decisions relied upon by the assessee are applicable to the facts of the case on hand while respectfully following the same, we allow the appeal, and direct the learned Assessing Officer to verify the details of the foreign tax paid by the assessee on the earnings at foreign source and take a view inconformity with the established law discussed above. 10. In the result, appeal of the assessee is allowed. Order pronounced in the open court on this the 24th day ..... X X X X Extracts X X X X X X X X Extracts X X X X
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