MYSIM THERAPEUTICS PRIVATE LIMITED,NEW DELHI vs. INCOME TAX OFFICER, DELHI

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ITA 2939/DEL/2026Status: HeardITAT Delhi11 August 2026AY 2022-233 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had made all efforts to file Form 10-IC, and the evidence supporting this was available on record, specifically the creation date of November 7, 2022, on the income tax portal. The Tribunal applied the principle of CBDT Circular No. 6/2022, issued for the preceding assessment year, to the current year. The reasoning was that the assessee had genuinely tried to file Form 10-IC on the due date, but it was not filed due to a technical glitch. Therefore, the Tribunal allowed the assessee's claim for assessment under Section 115BAA of the Act. The Assessing Officer was directed to grant consequential relief. No issue was expressly left undecided.

What were the facts?

The assessee, M/s Mysim Therapeutics Private Limited, is challenging an order of the Addl/JCIT(A)-2, Hyderabad, which confirmed the denial of benefit under Section 115BAA of the Income-tax Act, 1961. The assessment year in question is 2022-23. The assessee filed its return of income on November 19, 2022, which was after the due date of November 7, 2022. The CPC denied the claim under Section 115BAA because Form 10-IC and the Income Tax Return (ITR) were filed late. The assessee filed a rectification application on April 20, 2024, stating that while the ITR was filed late, it had attempted to file Form 10-IC on the due date, November 7, 2022, but could not due to a technical glitch. Evidence of this attempt was the creation date of Form 10-IC on the income tax portal.

What were the issues?

1. Whether the assessee is eligible for the concessional tax rate under Section 115BAA of the Income-tax Act, 1961, despite filing Form 10-IC and the Income Tax Return after the due date. Assessee's contentions: The assessee argued that it made a genuine attempt to file Form 10-IC on the due date, November 7, 2022, to avail the lower tax rate under Section 115BAA. This attempt was thwarted by a technical glitch, either with the income tax portal or the assessee's system. The creation date of Form 10-IC on the income tax portal, showing November 7, 2022, supports this. The assessee also relied on CBDT Circular No. 6/2022 dated March 17, 2022, which condoned delays in filing Form 10-IC for the preceding assessment year, arguing for its application in this case due to genuine hardship and it being the first year of business. Revenue's contentions: The judgment records that when the facts were confronted to the learned Senior DR, he could not controvert the assessee's submissions.

Which sections of the Income-tax Act were involved?

Section 115BAA,Section 139(1),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH-E : NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI KRINWANT SAHAY

For Appellant: Shri Divyanshu Agarwal, Shri Anubhav Rastugi, Advocates
For Respondent: Shri Tarun Sharda, Senior DR
Hearing: 11.08.2026Pronounced: 11.08.2026

Per Mahavir Singh, VP:

This appeal by the assessee is arising out of the order of Addl/JCIT(A)-2, Hyderabad in Appeal No.NFAC/2021-22/10378224, order dated 23 January, 2026. The rectification order under Section 154 of the Act was passed on 20" April, 2024 for the assessment year 2022-23 by the Deputy Director of Income-tax, CPC, Bengaluru.

2.

The only issue in this appeal of the assessee is as regards the order of the JCIT(A) confirming the action of the Assessing Officer in dismissing the rectification application filed by the assessee in confirming the denial of benefit under Section 115BAA of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

3.

Brief facts are that the assessee is a private limited company who filed its return of income on 19" November, 2022 whereas the due date of filing of return under Section 139(1) of the Act was 7"

2 ITA.No.2939/Del/2026

November, 2022. Since Form 10-IC and subsequent ITR was filed after the due date, the CPC denied the claim of the assessee to be taxed under Section 115BBA of the Act. The assessee, against the denial of claim of assessment under Section 115BAA of the Act, moved rectification application dated 20" April, 2024 stating that the income tax levied by the Assessing Officer at 30% while processing the return under Section 139(1) of the Act by the CPC, Bengaluru as against the rate applicable for domestic companies having turnover of less than 400 crores, as in the present case, at 25%. The assessee has been denied to be taxed under Section 115BAA and hence, moved rectification application stating the reason that the assessee filed return of income on 19° November, 2022 whereas the due date for filing the ITR was 7° November, 2022. The assessee explained that it tried to file Form 10-IC on 7 November, 2022 in order to avail the lower tax rate as prescribed under Section 115BAA of the Act before filing of the ITR within the due date but somehow could not file due to technical glitch, whether with the income tax portal or with the computer system of the assessee. This action of the assessee trying to file Form 10-IC on 7'* November, 2022 was proved by the fact that Form 10-IC is showing date as 7 November, 2022 in the income tax portal itself as the date on which the said form was created and saved. Subsequently, after filing Form 10-IC, the ITR was filed claiming the tax rate under Section 115BAA. But, this claim was denied by the CPC. Learned Counsel for the assessee now before us contended that the CBDT issued Circular No.6/2022 dated 17% March, 2022 for the preceding assessment year wherein delay in filing of Form 10-IC was condoned. Taking help of this Circular, the assessee stated that since this was the first year of business of the assessee, it was not able to ascertain the interpretation of provisions of Section 115BAA of the Act but, the assessee has tried its best to file Form 10-IC on 7" November, 2022 and that information is available on record.

4.

Learned Counsel for the assessee now before us contended that this is a case of genuine hardship and assessee has tried to file Form

3 ITA.No.2939/Del/2026

10-IC on 7 November, 2022 in order to avail lower rate of tax under Section 115BAA of the Act. When these facts were confronted to the learned Senior DR, he could not controvert the above facts.

5.

After hearing the arguments of both the sides and perusing the material placed before us, we are of the view that the assessee has made all efforts to file Form 10-IC and that evidence is available on record. In view of the CBDT Circular No.6/2022 dated 17‘ March, 2022 which is for the preceding year, we apply in this year also for the reason that the assessee has genuinely tried to file Form 10-IC on the due date which was not done due to technical glitch, whether with the income tax portal or with the computer system of the assessee. This action of the assessee trying to file Form 10-IC has been proved by the learned Counsel for the assessee before us by showing the date on the income tax portal i.e., 7" November, 2022. In view of these facts, we allow the claim of the assessee and direct the Assessing Officer to assess the assessee under Section 115BBA of the Act and allow consequential relief.

6.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on conclusion of hearing on 11" August, 2026. (KRINWANT SAHAY) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT

Date : 11.08.2026

VK.

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