The ITAT ruled that a procedural delay in filing Form 67 should not obstruct a treaty-based Foreign Tax Credit claim, granting relief of ₹10.06 lakh.
FTC Claim Not Denied Due to Filing Delay
The ITAT has clarified that a procedural delay in the filing of Form 67 should not derail a taxpayer's entitlement to a treaty-based Foreign Tax Credit (FTC). In doing so, the Tribunal allowed a relief of ₹10.06 lakh, emphasizing the need for substantial compliance over mere procedural timing.
The ruling signifies the Tribunal's stance that equitable considerations should govern the approval of tax claims, especially when bureaucratic delays occur. It presents a critical precedent for taxpayers seeking FTCs impacted by administrative inefficiencies.
Practitioners should advocate for their clients by leveraging this ruling when advising on FTC claims, ensuring that mere procedural lapses do not negate legitimate tax benefits.
Citations
- ITAT (2026) Taxscan
