AGROCORP INDIA TRADE SERVICES PRIVATE LIMITED,MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 15(1)(1), AAYAKAR BHAWAN, MUMBAI

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ITA 1949/MUM/2026Status: DisposedITAT Mumbai28 July 2026AY 2021-225 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CBDT Circular 19/2023 condoned the delay in filing Form 10IC for AY 2021-22, provided certain conditions were met. The assessee had fulfilled these conditions, and the delay should be condoned.

What were the facts?

The assessee claimed the benefit of Section 115BAA of the Income Tax Act, 1961, but failed to file Form 10IC within the due date. The Assessing Officer processed the return denying this benefit. The Commissioner (Appeals) also rejected the appeal.

What were the issues?

Whether the benefit of Section 115BAA can be granted when Form 10IC is filed belatedly, and if a CBDT circular condoning such delay applies even after the return has been processed.

Which sections of the Income-tax Act were involved?

Section 115BAA,Section 143(1),Section 250,Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: HON’BLE NARENDER KUMAR CHOUDHRY & HON’BLE MAKARAND VASANT MAHADEOKAR

Pronounced: 28.07.2026

आदेश / ORDER

PER: NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER: This appeal has been preferred by the Assessee against the order dated 06.03.2025, impugned herein, passed by the National Faceless Appeal Centre(NFAC)/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2021-22.

2. In the instant case, the Assessee by filing its original return of income on dated 15.03.2022, inter alia, declared the total income of Rs.11,64,291/- and claimed a refund of Rs.9,64,070/-, as per the provision of Section115BAA of the Act.

3.

The return filed by the Assessee was processed vide intimation dated 22.09.2022 u/s. 143(1) of the Act, who denied the benefit of lower rate of tax u/s. 115BAA of the Act, mainly on the reason that the Assessee has not filed declaration in Form 10JC.

3.1 Consequently, the Assessee preferred first appeal challenging the intimation dated 22.09.2022 before the ld. Commissioner, who by considering the peculiar fact that the Assessee in order to avail the benefit of Section 115BAA of the Act has to file Form 10IC within the due date and therefore, the ld. Commissioner rejected the appeal filed by the Assessee, however observed that the Assessee may file an application u/s. 119 (2)(b) of the Act before the ld. PCIT/CIT seeking condonation of delay in Form 10IC for AY 2021-22.

4.

Thus, the Assessee being aggrieved has preferred the instant appeal and the ld. Counsel for the Assessee drew our attention to the CBDT Circular 19/2023 dated 23.010.2023 wherein, the CBDT condoned the delay in filing of Form No.10IC for the AY 2021-22 subject to fulfilling certain conditions, which are highlighted as under: -

“3. On consideration of the matter, with a view to avoid genuine hardship to the domestic companies in exercising the option u/s 115BAA of the Act, CBDT in exercise of the powers conferred under section 119(2)(b) of the Act, hereby directs that: - The delay in filing of Form No. 10-IC as per Rule 21AE of the Rules for previous year relevant to A.Y. 2021-22 is condoned in cases where the following conditions are satisfied: i) The return of income for relevant assessment year has been filed on or before the due date specified under section 139(1) of the Act; ii) The assessee company has opted for taxation u/s 115BAA of the Act in item (e) of "Filing Status" in "Part A-GEN" of the Form of Return of Income ITR-6; and iii) Form No. 10-IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which this Circular is issued, whichever is later.”

4.1 Though the CBDT condoned the delay in filing of Form 10IC for claiming the benefit u/s. 115BAA of the Act in general cases, however question emerges “as to whether the benefit of such CBDT Circular would also be applicable to the case where the return filed by the Assessee has already processed and/or culminated into passing the assessment order denying the benefit”.

4.2 We observe, that the Hon’ble Jurisdictional High Court in the case of Mirae Asset Venture Investment India (P) Ltd. vs. Principal Commissioner of Income Tax (2025) 176 taxmann.com 405 (Bombay), has given answer to the above question by observing and holding as under: -

“11. However, as mentioned earlier, Mrs. Bharucha sought to justify the order on the basis that the said Circular did not apply to the present Assessee because its Return of Income was already processed under Section 143(1) and a demand of approximately Rs. 11 lakhs was raised on the Petitioner. We find that this argument holds no substance for the simple reason that the CBDT Circular does not put any such condition for condoning the delay. The CBDT Circular is unambiguous and stipulates that where an Assessee complies with the conditions mentioned in the Circular, the delay in filing Form 10IC needs to be condoned. Merely because the Return is processed under Section 143(1) would not dis- entitle the Assessee from seeking condonation of delay in filing Form 10IC. Similarly, we are unable to accept the submission of Mrs. Bharucha that once the non-filing of Form 10IC within the stipulated time is on the basis of the detection by the Assessing Officer, the Circular would not apply. Even this argument is of no substance because the Circular does not make any distinction as to who detects the delay in filing Form 10IC. We, therefore, find that the arguments canvassed by Mrs. Bharucha to sustain the impugned Order dated 30th December 2024 are misconceived and unsustainable. 12. In view of the foregoing discussion, we allow the above Writ Petition in terms of the prayer clause (a), which reads thus :- "A. That this Hon'ble Court may be pleased to issue a Writ of Certiorari or the Writ in the nature of Certiorari or any other appropriate Writ, Order or direction, calling for the records of the Petitioner's case and after going into the legality and propriety thereof, to quash and set aside the impugned Order passed under Section 119(2)(b) of the Act dated 30/12/2024 and condone the delay of 295 days on filing form 10-IC (EXHIBIT "F") and direct the Respondents to process Petitioner's return in accordance with law by giving effect to the order on the basis that Form No.10-IC has been filed within time.”

5.

Thus, from the aforesaid analysis, we reiterate that the CBDT has condoned the delay in filing Form No. 10-IC for claiming the benefit u/s 115BAA of the Act for the A.Y. 2021-22. The Assessee in this case electronically filed Form No. 10-IC on 30.11.2023, which was within the time prescribed by the CBDT, i.e., on or before 31.01.2024 or 03 months from the end of the month, in which the Circular was issued, whichever is later. Therefore, in our considered view, the Assessee would be entitled for the benefit of the provisions of section 115BAA of the Act. Accordingly, the impugned order is set aside and the case is remanded to the file of the Jurisdictional Assessing Officer for recomputation of the income in accordance with the provisions of section 115BAA of the Act, by treating Form No. 10-IC filed by the Assessee, as valid.

6.

In the result, Assessee’s appeal is allowed in the above terms.

Order pronounced in the open court on 28.07.2026.

Sd/- Sd/- MAKARAND VASANT MAHADEOKAR NARENDER KUMAR CHOUDHRY ACCOUNTANT MEMBER JUDICIAL MEMBER (Tarun Kushwaha) Sr. Private Secretary

Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench

//True Copy// By Order

Dy/Asstt. Registrar, ITAT, Mumbai.

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