TIRTHNKAR FINANCIAL SERVICES PRIVATE LIMITED,MUMBAI vs. ITO WARD 4(3)(1), MUMBAI, MUMBAI

ITA 2982/MUM/2026Status: DisposedITAT Mumbai22 September 2026AY 2021-2210 pages
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What were the facts?

The assessee, Tirthnkar Financial Services Private Limited, a domestic company, filed its Income Tax Return for Assessment Year (AY) 2021-22 on March 11, 2022, declaring Nil income and opting for the concessional tax regime under Section 115BAA of the Income Tax Act, 1961. The return was processed by the CPC, Bengaluru, under Section 143(1) on November 11, 2022. The CPC disallowed the benefit of Section 115BAA, computing tax under normal provisions and also under Section 115JB (MAT), raising a demand of ₹1,81,960. The assessee's appeal to the CIT(A) was dismissed. The CIT(A) held that Form 10-IC was not filed for AY 2021-22, as the form filed on October 31, 2022, pertained to AY 2022-23, and thus the assessee was not entitled to Section 115BAA benefits. The assessee is in appeal before the ITAT.

What did the Tribunal hold?

The Tribunal held that the assessee is entitled to the benefit of Section 115BAA for AY 2021-22. The Tribunal noted that the assessee had exercised the option in its return of income, filed within the extended due date. While Form 10-IC was filed on October 31, 2022, and reflected for AY 2022-23 due to technical issues on the portal, this procedural mismatch should not defeat the substantive option exercised. The Tribunal relied on CBDT Circular No. 19/2023, which condoned delays in filing Form 10-IC for AY 2021-22, and judicial precedents from the Mumbai, Calcutta, and Gujarat High Courts, which also took a lenient view in cases of technical difficulties. The Tribunal directed the CPC/Assessing Officer to treat the Form 10-IC filed on October 31, 2022, as sufficient compliance and allow the benefit of Section 115BAA, recomputing the tax liability accordingly. Consequently, the computation of tax under Section 115JB (MAT) was deleted as per Section 115JB(5A)(ii), and interest under Sections 234B and 234C was to be recomputed. Grounds 1, 2, and 3 were allowed.

What were the issues?

1. Whether the assessee can be denied the benefit of Section 115BAA for AY 2021-22 due to the procedural delay in filing Form 10-IC, especially when the option was exercised in the return of income and the form was later filed, albeit with a reference to AY 2022-23, considering technical glitches on the portal? (Question of law and fact, concerning Section 115BAA and Rule 21AE). Assessee's contention: The assessee argued that the denial of Section 115BAA benefit was erroneous, citing technical glitches on the portal that prevented timely filing of Form 10-IC for AY 2021-22. The option was exercised in the return, and the subsequent filing of Form 10-IC, though referencing AY 2022-23, should be considered substantial compliance, especially in light of CBDT Circular No. 19/2023 and judicial precedents. Revenue's contention: The revenue, through the CIT(A)'s order, contended that the non-filing of Form 10-IC for AY 2021-22, and the filing of the form for AY 2022-23, meant the assessee had not complied with the mandatory procedural requirement for availing the Section 115BAA benefit for the relevant year.

Which sections of the Income-tax Act were involved?

Section 115BAA,Section 115JB,Section 143(1),Section 139(1),Section 119(2)(b),Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI BIJAYANANDA PRUSETH

For Respondent: Smt. Sujatha Iyyanger, SR DR

PER SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:

This appeal is filed by the Assessee against the order of Ld. Joint Commissioner Income tax (Appeal)-2 Kolkata vide DIN: ITBA/APL/S/250/2025-26/1085689503(1) dated 06-Feb-2026 for the Assessment Year 2021-22. The Assessee has raised the following grounds of appeal:

1) On the facts and circumstances of the case and law, t

The order continues below.

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