Held\u00a0 that article 25 of the DTAA entitles the assessee to credit against the U. S. A. taxes paid or deducted from the income, prescribing no filing compliance therefor. The compliance required under rule\u00a0128(9)\u00a0was neither nullified by article 25 nor article 26 of the DTAA. Article 26 prescribes non-discrimination while dealing with additional or other requirements prescribed under domestic laws of the contracting State. Therefore, the contention that since the DTAA prescribed no filing requirement for foreign tax credit will prevail over the provisions of rule\u00a0128\u00a0prima facie failed.\u00a0 That it is a well-settled law that the rules are sub-ordinate piece of legislation, enacted to facilitate the carrying out of the objective of main legislation, i. e., provisions of the Act. The very purpose and object of insertion of rule\u00a0128\u00a0was to allow foreign tax credit and it was so prescribed by sub-rule\u00a0(1). Therefore, the mandate of sub-rule\u00a0(9)\u00a0was sub-servient to sub-rule\u00a0(1). The insertion of rule\u00a0128\u00a0was under the provisions of section\u00a0295(2)(ha)\u00a0of the Act which empowered the Board to prescribe procedure for granting of relief or deduction of any Income-tax paid in any foreign country outside India under section\u00a090\u00a0or\u00a090A\u00a0or\u00a091, against the Income-tax payable under the Act. This ipso facto clarified that the compliance envisaged under sub-rule\u00a0(9)\u00a0was procedural in nature.\u00a0 That filing of form 67 with certificates and statements was mandatory as it relates to the essence of foreign tax credit claim to be allowed as matter of substance, but directory with respective to the time-limit within which it was to be made as it was merely a matter of convenience rather than substance. As the matter of fact, rule\u00a0128\u00a0prescribed no consequences for delayed compliance or non-compliance.That filing of form 67, the certificate and statements as envisaged under sub-rule\u00a0(8)\u00a0at any time before it was actually processed or before the final assessment was actually made was sufficient compliance with sub-rule\u00a0(9)\u00a0of rule\u00a0128, and the assessee entitled to foreign tax credit.(AY.2019-20)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 90 : Double taxation relief-Foreign tax credit-Filing of Form 67 with certificates and statements is mandatory-Directory with respective to time-limit-DTAA does not prescribe filing requirement for foreign tax credit it will prevail over provisions of domestic law-Form, certificate and statements filed with return belatedly but before actually processing or before final assessment made is sufficient compliance-Entitled to credit-DTAA-India-USA.[S.6,90A, 91, 139(1) 139(4), R.128(9), Form No 67, Art. 25, 26] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50032","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-d0Y","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50032"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50032\/revisions"}],"predecessor-version":[{"id":50033,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50032\/revisions\/50033"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}