UJWAL PRAKASH SURANA,MALEGAON vs. WARD 1 MALEGAON, MALEGAON

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ITA 37/PUN/2026Status: DisposedITAT Pune30 June 2026AY 2022-233 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that once an option is exercised under Section 115BAC, it applies to subsequent assessment years unless withdrawn. Since the assessee had opted for the new regime in AY 2021-22, it was applicable for AY 2022-23.

What were the facts?

The assessee claimed tax benefits under Section 115BAC for AY 2022-23. For AY 2021-22, the assessee had filed Form 10IE but the return was belated, leading to denial of the new tax regime benefit for that year.

What were the issues?

Whether the benefit of the new tax regime under Section 115BAC for AY 2022-23 is available to the assessee, given the circumstances of AY 2021-22.

Which sections of the Income-tax Act were involved?

Section 115BAC,Section 139

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE

Before: SHRI PAVAN KUMAR GADALE & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Anup Ladda
For Respondent: Shri Madhukar Anand

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the Assessee against the order of the Learned Additional/Joint Commissioner of Income Tax (Appeals), Faridabad [Ld. Addl./JCIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2022-23 on 24.12.2025.

Submission of Ld. AR: 2. The Ld. AR submitted that the assessee had claimed tax benefit under the new regime u/s 115BAC of the Income Tax Act for AY 2022-23. The Ld. AR further submitted that for AY 2021-22, the assessee had filed return of income under the new tax regime u/s 115BAC of the Act. The assessee also filed Form No. 10IE for AY 2021-22. However, the return of income for AY 2021-22 was filed belatedly, hence, the assessee’s case was not considered for new tax regime u/s 115BAC of the Act. The Ld. AR submitted that the assessee had filed return of income for AY 2022-23 u/s 115BAC of the Act, hence, the assessee is eligible for new tax regime.

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Submission of Ld. DR:

3.

The Departmental Representative relied on the order of the Assessing Officer and Ld. CIT(A).

Findings and analysis:

4.

We have heard the Ld. Representatives of the parties and perused the records. In this case for the sake of bringing facts on record, we are reproduced the relevant paragraphs of the Ld. CIT(A)’s order : “As per CPC 2.0 portal, the appellant has filed Form 10-IE for AY 2021- 22 on 24-03-2022. In these circumstances, the benefit of new tax regime under Section 115BAC was not given to the appellant for for AY 2021-22, and accordingly, the benefit cannot be given for AY 2022-23 too. 4.4 In lieu of the above, it i it is held that the Centralized Processing Center is correct in not considering the option to pay tax under Section 115BAC vide its intimation order u/s 143(1) passed on 23/02/2023 and its rectification order dt. 30/11/2023. Accordingly, the appeal is dismissed.”

4.1 Thus, in this case for AY 2022-23, the assessee had not filed Form 10IE. The assessee relied on Form 10IE filed for AY 2021-22, however, the return of income for AY 2021-22 was filed belatedly. Therefore, the assessee was denied benefit of section 115BAC of the Act for AY 2021-22.

5.

Section 115BAC of the Act is reproduced here as under : “115BAC : Provided further that where the option is exercised under clause (i) of sub-section (5), in the event of failure to satisfy the conditions contained in subsection (2), it shall become invalid for subsequent assessment years also and other provisions of this Act shall apply for those years accordingly. (5) Nothing contained in this section shall apply unless option is exercised in the prescribed manner by the person,— (i) having income from business or profession, on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the 1st day of April, 2021, and such option once exercised shall apply to subsequent assessment years; (ii) having income other than the income referred to in clause (i), alongwith the return of income to be furnished under sub-section (1) of section 139 for a previous year relevant to the assessment year”.

6.

Thus, as per sub-clause (5) of section 115BAC of the Act once the assessee has opted for section 115BAC of the Act, the option shall apply to subsequent years unless it is withdrawn by the assessee. In this case, the

ITA No. 37/PUN/2026

assessee had given the option to opt for new tax regime for AY 2021-22. Therefore, as per section 115BAC(5) of the Act it is applicable for AY 2022- 23 also as the assessee has not withdrawn it. Accordingly, we direct the Assessing Officer to compute the tax of the assessee as per section 115BAC of the Act for AY 2022-23.

7.

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

Order pronounced in the open Court on 30th June, 2026

Sd/- Sd/- (PAVAN KUMAR GADALE) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER

पुणे/Pune; दिन ांक/Dated : 30-06-2026 Ravi Kumar Ravi Kumar Digitally signed by Ravi Kumar Date: 2026.06.30 15:33:03 +05'30' आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent 3. The concerned Pr. CIT, Pune 4. DR, ITAT, ‘SMC’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण,पुणे / ITAT, Pune

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