ZENITH FASHIONS PVT LTD,DELHI vs. ITO WARD 27(1), DELHI

The assessee has raised the following groundS in appeal: 1. On the facts and in the circumstances of the case as well as in law, the Ld. Additional Commissioner of Income Tax (Appeals) grossly erred in dismissing the appeal of assessee ignoring the fact that the appellant has filed Form 10-IC on 10-11-2023 which was well within the extended period up to 31-01-2024nextended by Hon’ble CBDT, New Delhi vide Circular No. 19/2023 which categorically provides that the Form 10-IC for the A.Y.2021-22 may file up to 31-01-2024 or 3 months from the end of month of circular whichever later. 2. On the facts and in the circumstances of the case as well as in law, the Ld. Additional Commissioner of Income Tax (Appeals) grossly erred in upholding the rectification order passed u/s 154 of Income Tax Act 1961 by CPC Bengaluru which is otherwise invalid and bad in law. 3. On the facts and in the circumstances of the case as well as in law, the Ld. Additional Commissioner of Income Tax (Appeals) grossly erred in confirming the rectification order passed u/s 154 of the Income Tax Act 1961 ignoring the fact that the assessee has complied with the mandatory requirement of section 115BAA of Income Tax Act, 1961 and Form 10-IC was filed electronically on 10-11-2023 which is well within the extended period prescribed by Hon’ble CBDT. 4. The appellant crave leave to add/ delete/ alter or modify any or all grounds of appeal.

The brief facts of the case are that the assessee is a domestic company having income from business. The company filed its return of income regularly. The assessee company shown the gross receipts less than 400 crores for the A.Y.2021- 22. The Assessing Officer, CPC calculated the tax @ 30 % instead of 25% even though the gross receipts of the company for all the Assessment years were less than 400 crores. The assessee company filed the rectification application thrice which were rejected without passing speaking order. 4. Aggrieved the order of the Assessing Officer the assessee filed the appeal before Ld.CIT(A) who vide order dated 12-01-2026 dismissed the appeal. The relevant finding of the Ld. NFAC is reproduced herein under: “For the plain reading of the section 115BAA(5) of the Act, lower tax rate of 22% is applicable only when the option is exercised in the prescribed manner on or before the due date of filing of return of income u/s 139(1) of the Act. In this case, though the appellant had exercised the option I the return u/s 139(1) of the Act. However, the applicable FORM 10IC was not filed before the due date prescribed u/s 139(1). It is an admitted fact that the appellant filed FORM 10IC on 10-11-2023 subsequent to the processing of the original return u/s 143(1) on 21-02-2023. Thus, there was clear violation of the clause 5 of section 115BAA. Hence the appellant was not eligible for the option claimed u/s

We have heard both parties and gone through the material available on record. If the report on Form No 10IC was not filed on-line on or before filing the return of income, then it is a curable defect. The CBDT extended the date for filing the Form 10IC for the A.Y.2021-22 upto 31-01-2024. The assessee has uploaded the report on Form 10 IC within the extended time on 10-11-2023 as alleged by him then the denial of claim of exemption under section 115BAA of the Act is not justified. Therefore, we direct the Assessing Officer to allow the benefit of section 115BAA of the Act to the assessee. The appeal of the assessee is allowed for statistical purpose. 9. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 19.08.2026. Sd/- Sd/-