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TMI Blog2024 (11) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (hereinafter referred to as 'the Act') by the CPC determining the total income of the assessee at Rs. 5,34,23,840/-, wherein the amount of Rs. 62 lakhs shown as royalty income to be charged at special rate of 10% u/s 115BBF of the Act was determined to be taxed at normal rate. 3. Before the Addl/JCIT(A), Panchkula, it was submitted that the assessee tried to file Form No.3CAF before filing the return. However, the relevant assessment year 2019-20 was not enabled on the system for which, the Form could not be filed. It was submitted that Form No.3CFA was filed after the system made the relevant assessment year available for selection in the Form, exercising the option u/s 115BBF of charging royalty at special rate of 10%. However, the CPC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by way of filing the form 3CFA on or before the due date of the Income tax return. The appellant contends that Grievance by way of e-Nivaran was raised on 30.07.2019 regarding inability to upload Statutory form. It is evident from the Section 119(2)(b) that the Assessing Officer (AO), Joint Commissioner of Income Tax (Appeals) [JCIT(A)], and Commissioner of Income Tax (Appeals) [CIT(A)] do not have the authority under Section 119(2)(b) of the Act to grant condonation for the delay in filing Form. Neither the AO during return processing nor I, the JCIT(Appeals) when finalizing the appeal, are empowered by the statute to condone appellant delayed filing of Form 3CFA Since the appellant has NOT filed form 3CFA within statutory limit, he i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find due to non submission of Form No.3CFA along with the return of income, the CPC taxed an amount of Rs. 62 lakhs at normal rate as against the special rate of 10% claimed by the assessee. We find the Addl/JCIT(A) dismissed the appeal filed by the assessee, the reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the Ld. Counsel for the assessee that the return was filed before due date but the Form No.3CFA could not be filed along with the return since the relevant assessment year was not enabled on the system. However, when it was made available in the system, the assessee filed the For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FTC claimed by the assessee and give due credit to the Kenya income of the assessee and pass a final assessment order. The relevant observations of the Hon'ble High Court read as under: "8. Heard the learned counsel appearing on either side and perused the materials available on record. 9. In the present case, the petitioner initially worked at Kenya and subsequently, he became the resident of Indian from the assessment year 2018-2019 and 2019-2020. The petitioner admitted the fact that he has filed his return in India on 10.08.2019. The intimation under Section 143(1) was issued on 26.03.2020. However, he has filed the return without Form-67 which is required to be filed under Rule 128 to claim the benefit of FTC and the same came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be squarely applicable to the present case. In the present case, the returns were filed without FTC, however the same was filed before passing of the final assessment order. The filing of FTC in terms of the Rule 128 is only directory in nature. The rule is only for the implementation of the provisions of the Act and it will always be directory in nature. This is what the Hon'ble Supreme Court had held in the above cases when the returns were filed without furnishing Form 3AA and the same can be filed the subsequent to the passing of assessment order. 12. Further, in the present case, the intimation under Section 143(1) was issued on 26.03.2021, but the FTC was filed on 02.02.2021. Thus, the respondent is supposed to have provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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