Non‑Filing of Form 3CFA With Return u/s 115BBF: ITAT Sets Aside Order and Remands Matter to AO for Fresh Adjudication [Read Order]

The Pune Bench of Income Tax Appellate Tribunal ( ITAT ) set aside the order and remanded the matter to the Assessing Officer (AO) after finding that the denial of Section 115BBF of Income Tax Act,1961, benefit was due to non‑filing of Form 3CFA with the return.

Ramesh Shankarrao Wagh,appellant-assessee,appealed against the order of the Addl./Joint Commissioner of Income Tax (Appeals)[CIT(A)] dated 13.03.2025 for A.Y. 2020-21, which stemmed from the assessment order under Section 143(1) dated 25.11.2021.

The assessee counsel filed a paper book and explained that the assessee had claimed the benefit under Section 115BBF of the Act but did not file Form No. 3CFA with the return of income. The form was filed later, but the Centralized Processing Centre (CPC) rejected the claim while processing the return because the form was missing at the time of filing.

The counsel argued that this was only a procedural lapse and said the claim should be accepted since the form was later submitted, as shown on pages 37 to 39 of the paper book. It was also noted that the assessee met all the necessary conditions.

To support the argument, the counsel referred to several case laws, including ACIT vs. Pankaj Kailash Agarwal [2025],Penang Enterprises (P.) Ltd. vs. CBDT [2025], Sonakshi Sinha vs. CIT(A) [2022] 197 ITD 263 (Mumbai - Trib.) etc.

The departmental counsel relied on the orders of the AO and the CIT(A).

The two member bench comprising Vinay Bhamore (Judicial Member) and Dr.Dipak P.Ripote (Accountant Member) heard both sides and reviewed the records. It noted that the assessee had filed the return for A.Y. 2020-21 declaring income of ₹32,80,490 and claimed the benefit under Section 115BBF, but had not filed Form No. 3CFA with the return.

The CPC processed the return under Section 143(1) and denied the claim. The ITAT observed that Form No. 3CFA was later filed electronically on 04.07.2023, after the CPC’s order but before the CIT(A)’s order, and was available during the appeal.

The appellate tribunal referred to the ITAT Indore Bench decision in Shri Yashwant Singh Pawar vs. ITO, which held that filing such forms was a procedural requirement and the benefit should not be denied if the form was submitted later.

Following this view, the tribunal set aside the order under Section 143(1) and sent the matter back to the AO reconsider the claim after verifying Form No. 3CFA and giving the assessee an opportunity of being heard.

Accordingly,the appeal was allowed for statistical purposes.

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