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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 ..... et aside the order of the Addl/JCIT(A), Panchkula and direct the Assessing Officer to tax the royalty income at special rate of 10% as against the normal rate adopted by the CPC. The grounds raised by the assessee are accordingly allowed. - Shri R. K. Panda, Vice President And Shri S.S. Godara, Judicial Member For the Assessee : Shri B.D. Bhide For the Department : Shri Ramnath P Murkunde ORDER PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the order dated 29.03.2024 of the Addl./JCIT(A), Panchkula relating to assessment year 2019-20. 2. Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 18.07.2019 declaring total income of Rs. 4,72,23,840/-. The return was pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a vis-in ROI. FORM No. 3CFA u/ sub section (3) of section 115BBF Read with rule 5G i.e. Form for Opting for taxation of income by way of royalty in respect of Patent was elatedly filed by appellant on 25.09.2019 vide Ack no 174395130250919 after due date of ITR (Due date was 31.08.2019) Assessee contends that Royalty income of Rs 6200000 chargeable at special rate of 10 percent under section 115BBF has been wrongly charged to tax at normal rate. Section 115BBF gives concessional rate of tax i.e @ 10% on income earned by the way of royalty on patent developed and registered in India, provided that no deduction in respect of any expenditure shall be allowed to the assessee in computing his income for taxation @ 10%. Eligible assessee may opt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn. Relying on various decisions, he submitted that under somewhat similar circumstances where the statutory forms required to be filed along with the return, were filed before completion of the assessment, no addition / disallowance was called for. He accordingly submitted that the Addl/JCIT(A) was not justified in dismissing the appeal filed by the assessee. 7. The Ld. DR on the other hand strongly supported the order of the Addl/JCIT(A) and submitted that since the assessee failed to furnish the Form No.3CFA along with the return of income, therefore, the Addl/JCIT(A) was fully justified in confirming the action of the CPC. 8. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Duraiswamy Kumaraswamy vs. PCIT (2024) 460 ITR 615 (Madras). In that case, the assessee who was employed in Kenya filed his Indian income tax return and claimed the benefit of FTC u/s 90/91 of the Act. However, the assessee inadvertently did not upload Form No.67 which is required to claim FTC along with the return. The assessee later uploaded the Form No.67 but before completion of the assessment proceedings. The FTC claim was rejected by the Revenue on the ground that the assessee failed to comply with the statutory obligation of filing of Form No.67 along with the return u/s 139(1) of the Act. The Hon ble High Court restored the issue to the file of the Assessing Officer with a direction to make the re-assessment by taking i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Act. The petitioner referred to the Judgment of the Hon'ble Supreme Court in the case of Commissioner of Income-Tax Maharashtra v. G.M.Knitting Industries (P) Limited in Civil Appeal Nos.10782 of 2013 and 4048 of 2014 dated 24.06.2015, wherein it was held that Form 3AA is required to be filed along with the return of income to avail the benefit and even if it is not filed, but the same is filed during assessment proceedings but before the final order of assessment is made that would amount to sufficient compliance. 11. The law laid down by the Hon'ble Apex Court in Commissioner of Income-Tax, Maharashtra v. G.M.Knitting Industries (P) Limited in Civil Appeal Nos.10782 of 2013 and 4048 of 2014 dated 24.06.2015, which was referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e first respondent is directed to consider only on the aspect of rejection of FTC claim within a period of 8 weeks from the date of receipt of copy of this order. 10. Since in the instant case, admittedly, the assessee has uploaded the Form No.3CFA before completion of the proceedings u/s 143(1) of the Act, therefore, we are of the considered opinion that the Addl/JCIT(A), Panchkula should not have rejected the appeal filed by the assessee and thereby directing the Assessing Officer to tax the royalty income at normal rate. We, therefore, set aside the order of the Addl/JCIT(A), Panchkula and direct the Assessing Officer to tax the royalty income at special rate of 10% as against the normal rate adopted by the CPC. The grounds raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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