HOTEL SURBHI PALACE INDIA PRIVATE LIMITED,DEHRADUN vs. DCIT, CIRCLE-1(1)(1), DEHRADUN, DEHRADUN

Brief facts of the case are that the assessee has filed its return of income on 15.02.2021, declaring total income of INR 41,21,640/- for the year under appeal. The case of the assessee was processed u/s 143(1) in terms of order dated 24.12.2021 wherein certain disallowances were made and further benefit of concessional rate of tax u/s 115BAA of the Act was denied.

Against the said order, the assessee filed a rectification application u/s 154 which was rejected by CPC, Bangalore in terms of order dated 02.02.2023 and an appeal was preferred which was rejected by ld. CIT(A) by not admitting the appeal on the ground of limitation which is separately challenged by ITAT in ITA No.106/DDN/2026 before us and heard together.

First we take up the assessee’s appeal for Assessment Year 2020-21 in ITA No.105/DDN/2026.

The assessee preferred an appeal before ld. CIT(A) against the intimation order wherein the assessee has claimed that though Form 10IC was not filed prescribed under sub-section (5) of section 115BAA of the Act was not filed upto the statutory time limit of 30.06.2022 nor upto extended time limit nor before the passing of intimation order however, it was filed manually on

Aggrieved by the said order, assessee preferred an appeal before the Tribunal by taking various Grounds of appeal mentioned in the appeal memo.

Before us, Ground of appeal Nos. 1 & 2 raised by the assessee are with respect to denial of benefit claimed u/s 115BAA and taxed the income of the assessee u/s 115JB of the Act.

Before us, Ld.AR reiterated the same arguments as were made before ld. CIT(A) and submits that the appellate proceedings are the extension of the assessment proceedings and therefore the Form 10IC submitted before the AO during the course of pendency of first appellate proceedings should be admitted and assessee be entitled for concessional rate of tax as per section 115BAA of the Act. He prayed accordingly.

On the other hand, ld. DR for the Revenue has strongly objected to the claim of the assessee and submits that the assessee has failed to comply the mandatory requirement of filing of Form 10IC before the due date of filing the return of income or before the extended time provided and therefore the claim of the assessee could not be admitted at this stage and thus, ld. DR vehemently supported the orders of the lower authorities.

Heard the contentions of both the parties at length and perused the material on record. It is an admitted position that filing of Form 10IC mandatory precondition to avail the benefit of concessional rate of tax u/s 115BAA(5) of the Act. It is also a matter of fact that the said Form was finally filed on 08.02.2024, copy of which is placed at pages 234 to 236 of the Paper 3

Reliance is placed on the judgement of Co-ordinate Bench of the Tribunal in ITA No.2695/Del/2025 for [Assessment Year : 2020-21] in the case of Horizon HGE Electronicequipment India Pvt. Ltd. vs DCIT vide order dated 16.01.2026 wherein Co-ordinate Bench has made following observations as contained in para 5 & 6 of the order which are reproduced as under:- 5. “Heard the contentions of both parties and perused the material available on record. The assessee claimed that due date for filing Form 10-IC was extended by CBDT Circular No.6/2022 dated 17.03.2022 upto 30.06.2022. The assessee availed this opportunity and tried to file the Form 10IC through online portal however, the report filed by the assessee was not accepted in online portal and necessary copy of the screenshot was filed at pages 05 to 17 of PB filed by the assessee. It is the claim of the assessee that the delay in filing the form 10IC is beyond the control of assessee and therefore, the benefit of concessional rate of tax u/s 115BBE should be allowed to it. In support of his claim, the assessee placed reliance on the following judgements:- (i) Odyssey Corporation Ltd. vs DCIT [ITA No.807/Mum/2025] dated 30.06.2025; (ii) Mangal Tirth Estate Ltd. vs ITO [ITA No.30/Chy/2025 dated 07.07.2025]; and (iii) KN Support Services (P.) Ltd. vs DCIT [2025] 178 taxmann.com 368 (Del.) 6. It is observed that when no resolution was given by CPC, the assessee through e-mail dated 29.06.2022, mailed Form 10-IC alongwith grievance raised before CPC to the AO which are available at page 18 to 34 of the PB. Once the assessee has filed Form 10-IC within the extended due date through physical mode or via mail to AO as filing the same online was beyond its control, assessee should not be deprived of the legal benefit available to it. Accordingly, we direct the AO to allow the benefit of section 115BAA of the Act and charge tax at concessional rate of as per said section. Accordingly, all the grounds raised by the assessee are allowed.

Ground of appeal Nos. 3 & 5 raised by the assessee are not pressed hence, dismissed and Ground of appeal No.6 is general in nature hence, not adjudicated.

Ground of appeal No.4 is with respect to the disallowance of employee’s contribution of PF & ESI of INR 1,55,230/- u/s 36(1)(va) of the Act.

Though this issue is squarely covered against the assessee by the judgement of Hon’ble Supreme Court in the case of Checkmate Services Ltd. reported in 448 ITR 518 (SC). However, it was the claim of the assessee that some of the payments were made before the due date under the respective Act. Thus, The AO is directed to verify the actual date of payment and decide the issue as per law. Ground of appeal No.4 raised by the assessee is allowed for statistical purposes.

Ground of appeal No.7 raised by the assessee is with respect to levy of interest u/s 234A & 234B which is consequential in nature and AO is directed to charge the interest as per law after giving effect to the order of the Tribunal in the present appeal.

In the result, appeal of the assessee is partly allowed.

Against the said order, assessee filed an appeal before ld. CIT(A) however, the same was delayed by 22 days and ld. CIT(A) has denied the condonation of delay and dismissed the appeal by not admitting the same.

Aggrieved by the order of ld. CIT(A), assessee is in appeal before the Tribunal by taking various grounds of appeal mentioned in the appeal memo.

Heard the contentions of both parties at length and perused the material available on record. It is observed that the issue involved in the present appeal is with respect to the extending the benefit of concessional rate of tax as per section 115BAA of the Act when the Form 10IC was filed delayed. This issue has already been allowed while disposing the appeal of the assessee in ITA No.105/DDN/2026 for AY 2020-21 herein above. Thus, this appeal of the assessee became infructuous hence, dismissed.

In the result, appeal of the assessee is dismissed.

In the final result, appeal of the assessee in ITA No.105/DDN/2026 for Assessment Year 2020-21 is partly allowed and appeal of the assessee in ITA No.106/DDN/2026 for Assessment Year 2020-21 is dismissed. Order pronounced in the open court on 14.08.2026. Sd/- Sd/-