JAGDAMBA ICE AND COLD STORAGE PVT. LTD.,INDORE vs. ITO WARD 1(1) INDORE, INDORE

Per Paresh M. Joshi, JM:

This is an Appeal filed by the Revenue under section 253 of

the Income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this tribunal. The Revenue is

aggrieved by the order bearing No:-ITBA/APL /S/250/2025-

26/1078953440 (1) dated 28.07.2025 passed by the Ld.

CIT(A) u/s 250 of the Act which is hereinafter referred as the

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 “Impugned Order”. The Relevant Assessment Year is 2020-

21 and the corresponding Previous Period is from

01/04/2019 to 31/03/2020.

2.1 That as & by way of an Intimation Order u/s 154 bearing

Number: -CPC/2021/U6/325620616 dated 23.02.2023 a

demand of Rs. 89,810/- was made on the Assessee. The earlier

order of CPC was bearing DIN No: -CPC/2021/U6/243273066

dated 01.07.2022; which was sought to be rectified by the

Assessee. The total Income of the Assessee was at Rs.

13,06,900/- & tax thereon came to Rs. 89,810/- as payable. It

was claim of the Assessee Company who was in the business of

running of cold storage to pay Income Tax u/s 115BAA. It

was a domestic company. The Assessee opted to pay tax at a

concessional rate of 22% [plus applicable surcharge & cess]

however the CPC charged Tax @ of 30% even though the

turnover was less than 400 crores & raised a demand of Rs.

89,810/- despite availing benefit of 115BAA. It is the claim of

the Assessee that higher tax liability has been calculated due to

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 Non filing of form No: -10IC which primarily occurred due to

Covid-19 & system glitches being first year for option

exercised for Section 115BAA this was clarified

further/agitated u/s 154 but same was not considered. The

Assessee was required to submit Form 10IC prior to furnishing

ITR to avail the tax benefit of New tax Regime but due Covid-19 &

system failure they could not submit Form 10IC & ultimately

same was left by oversight but the necessary option was

exercised for paying the concessional tax under Section 115BAA

in the “ITR Form 6”. In this regard it is the claim of the Assessee

that he had requested for option after personally handing over

to PCIT Indore an application u/s 119(2)(6) in pursuance to

CBDT Circular No:-06/2022 dt 17.03.2022 under which

condonation to be applied upto 30.06.2022. It is also the claim of

the Assessee that in ITR-6 there is no field to mention the

date of submission of Form 10IC. It is also a case of the

Assessee that the Non submission of Form 10IC is a technical

mistake on the part of the Assessee Company. It is also the

case of the assessee that substantive law benefits under a

statue cannot be taken away by adjudicatory authority on

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 mere technicalities. [ Smt Sneh Lata Jain v/v CIT (2004) 140

Taxman156(J&K)] For Assessment Year 2020-21 system

glitches did not accept the form 10IC for the Assessment Year

2020-21. The Assessee Company never had a intention to make a

revenue loss. No body gains by a technical mistake if any,

especially for a benevolent provision. In brief both by “original

Intimation order u/s 143(1)” as well as by “Rectification order

u/s 154”, the benefit of 22% of the Tax slab was denied, as

the Assessee for a bonafide reason could not file/upload the

Form 10IC for claiming benefit u/s 115BAA of the Act; which

otherwise the Assessee company was entitled to in view of above

facts & circumstances.

2.2 That the Assessee being aggrieved by the aforesaid

“Impugned Assessment Order” prefers the first appeal u/s

246A of the Act before the Ld. CIT (A) who by the

“Impugned Order” has dismissed the first appeal of the

Assessee on the grounds & the reasons stated therein. The

core grounds & the reasons for the dismissal the first

appeal was as under: -

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 “6.1 The written submission and other related

documents filed by the appellant have been

carefully perused. It is noted that the solitary

issue raised by the appellant-company vide all

the grounds of the present appeal is that the

CPC has not calculated the tax liability as per

the taxation option exercised by the appellant-

company u/s 115BAA of Act in the return of

income filed for A.Y. 2020-21. Therefore, all

the grounds of appeal are adjudicated as under

6.2 Ground No. 1 to 6: The Appellant has

submitted that appellant company pay tax

after exercising option of section 115BAA for

the A.Y 2020-21 hence paid tax at a

concessional rate of 22 percent (plus applicable

surcharge and cess) and accordingly the

appellant company had not claimed any

deductions and incentives, but learned AO CPC

charged tax at 30 percent even having turnover

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 less than Rs. 400 Crore in earlier years during

processing the retum u/s 143(1) and issued

intimation with tax payable of Rs. 89,810/-

which is against the availing option of new

regime u/s 115BAA. Therefore, the higher

liability of the tax has beten raised and

calculated due to considering of not filing of

the form no. 10 IC but it was occurred due to

system glitches being first year for applying of

said section. Due to delay. Form 10 IC was not

getting submitted on the department website.

Further, the appellant had submitted that

application of 119(2)(b) has been submitted to

PCIT concerned for condonation of delay in

filing to form no. 10IC.

6.3 I have gone through the facts of the case,

statement of facts and grounds of appeal as

well as submission filed by the appellant.

Having considered above facts of the case, at

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 present, till the decision on condonation of

delay in filing Form No. 10IC by the

appropriate authority; the action of the CPC in

denying the option of section 115BAA of the

Act, is thus found to be in order and hence the

adjustment/addition made in the case for A.Y.

2020-21 by the CPC is upheld. However, the

Jurisdictional Assessing Officer (JAO) is

directed not to treat the Appellant as 'an

assessee in default of taxes, till the petition

for condonation u/s 119(2)(b) of the Act is

disposed by the competent authority. As such,

this ground of appeal is treated as dismissed

in above terms.

6.4 Ground No.7: This ground is general in

nature which does not require any specific

adjudication. Therefore, this ground of appeal

is Dismissed.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 7. As a result, the appeal is Dismissed.”

2.3 That the Assessee being aggrieved by the “Impugned Order”

has preferred the Instant Second Appeal before this Tribunal &

has raised the following grounds of appeal in the form No: -36

against the “Impugned Order” which are as under: -

“1. On the facts and in the circumstances of the

case and in law, the learned CIT(A) erred in

dismissing the appeal of the appellant, without

appreciating that the appellant had duly opted

for taxation under section 115BAA of the Act but

was prevented from filing Form No. 10-IC

electronically due to technical glitches on the

Income Tax portal, which is a reasonable cause

covered under section 119(2)(b).

learned CIT(A) failed to appreciate that the clear

intention of the appellant to opt for the

concessional tax regime was evidenced by Non-

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 claiming of any deductions and incentives in the

return of income, Payment of advance tax,

calculated at 22% rate under Section 115BAA and

Clear declaration in the return of income

regarding the exercise of option under Section

115BAA.

learned CIT(A) failed to recognize that non-filing of

Form 10IC with return of income due to genuine

technical difficulties should not defeat the

substantive right of the taxpayer to opt for the

beneficial tax regime and that the requirement of

filing Form 10IC is procedural in nature and not

substantive especially when the assessee had bona

fide intention and had also submitted a

condonation request.

upholding the CPC's action of taxing the appellant

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 at the rate of 30% instead of 22%, which is

against the legislative intent of section 115BAA,

thereby leading to excessive taxation.

facts in dismissing the appeal without properly

adjudicating on the merits of the appellant's claim

for section 115BAA benefit, and merely granting

limited relief by directing non-initiation of

recovery proceedings till disposal of condonation

petition.

learned CIT(A) has erred in not appreciating that

the rejection of the rectification application and

dismissal of the appeal without considering the

pending condonation application under Section

119(2)(b) violates the principles of natural justice

and fair play.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 7. On facts and circumstances of the case, The

learned CIT(A) has erred in not giving due

consideration to the system glitches and technical

issues in the income tax portal during the initial

implementation of Section 115BAA, extraordinary

circumstances created by the COVID-19 pandemic

which affected normal business operations, the

income tax portal was not accepting Form 10IC for

A.Y. 2020-21 during the relevant period and lack

of clarity on procedural requirements as it was

the first year of implementation of the new tax

regime under Section 115BAA.

the learned CIT(A) has erred in not allowing the

relief in respect of Tax Calculated except directed

as appellant should not be treated as 'assessee in

default' upto pendng of the decision on

condonation application, before PCIT.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 9. On facts and circumstances of the case, the

learned CIT(A) has erred in not appreciating that

there is no revenue loss to the department as the

appellant has already paid tax at the higher rate

as demanded and the mistake was purely

procedural without any intention to evade tax.

10.On facts and circumstances of the case, The

learned CIT(A) has failed to consider CBDT

Circular No. 06/2022 dated 17th March 2022 and

its implications for cases involving delayed filing

of Form 10IC and not appreciating the policy

intent behind Section 115BAA which was to

provide relief to taxpayers and encourage

compliance.

11.On facts and circumstances of the case, the Ld.

CIT(A) has erred in confirming the levy of interest

under sections 234A and 234B, which is

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 consequential in nature and ought to be deleted if

the additions are reversed.

and relief be passed.

13.Your appellant reserves its right to add to

amend to alter or to modify any of above grounds

and to pursue any other or further grounds as

may be required.”

3.1 The hearing in the matter took place before this Tribunal on

15/10/2026, when the Ld AR for and on the behalf of the

Assessee appeared before us & Interalia contended that the

"Impugned Order” is bad in law, illegal & not Proper. It therefore

deserves to be set aside.

3.2 The Ld AR has placed on the record of this tribunal a paper

book containing Pages 1 to 228 on the record of this tribunal.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 The Ld AR has also placed on the record a written submission

booklet. Plus, loose written submissions. [Not in booklet

Form]. Written Arguments of four Pages copy of Affidavit dt

06.08.2024 of the Assessee Director before Ld CIT(A). Form 10IC

dt 30.09.2023 with Acknowledgment dt 30.09.2023. [Copy of

the Supreme Court Order in case of PCIT v/s Wipro Ltd reported

in (2022) 140 Taxmann.com 223(SC) by SDR] The ITAT Indore

order dt 30.09.2025 in ITA No: -841/Ind/2024 in case of Sanjana

Clothings Pvt Ltd v/v AID CPC Bengaluru.

3.3 The Ld AR invited our attention to PAPER BOOK Page 4

which was a copy of ITR-6 for Assessment Year 2020-21 &

highlighted the portion that benefit of Section 115BAA was

claimed by the Assessee Company. The Ld AR then highlighted

basis PAPER BOOK Page 193 that gives tax details as provided by

the Assessee & as computed in order u/s 154. Our attention was

invited to PAPER BOOK Page 200 & 201 which was Assessee

company application to PCIT II Indore MP for the condonation of

delay in filling Form No:-10IC for Assessment Year 2020-21 due

to system glitches. Our attention was invited to PAPER BOOK

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 pages 202 to 203 to the CBDT Circular No:-6/2022 dt

17.03.2022 with regard to the condonation of delay u/s 119(2)(6)

of the Act in filling of Form 10IC for Assessment Year 2020-21,

Para 3 was relied upon. Para 6,6.1,6.2,6.3,6.4, & 7 were read out

by Ld AR of the “Impugned Order” & it was contended that

technical glitches cannot deny Assessee Company a substantive

benefit when Section 115BAA was claimed in ROI & the Assessee

conduct before & after ITR was of compliance & his subsequent

action post 143(1) order in form of rectification u/s 154 & first

Appeal should not be construed otherwise as intention was to

claim a benefit in a reasonable & bonafide manner. The Assessee

should not suffer on the technical issue. Reliance was placed on

precedent law of ITAT Indore Bench which we have recorded

(supra). Per contra Ld DR appearing for the revenue contended

that the Assessee should not be allowed now & reliance was

placed on (2022) 140 Taxmann.com 223(SC) [PCIT v/s Wipro

Ltd][supra]. The Assessee has filed for Assessment Year 2023-24

which was allowed. For the next 2 years i.e. 2021-22 & 2022-23

the Assessee did not file Form 10IC .The hearing was over &

concluded.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 4 Observations, Finding and Conclusions

4.1 We have to decide the legality, validity and the proprietary of

the “Impugned Order” basis records of the case & the rival

submissions canvassed before us.

4.2 We have carefully perused the records of the case and have

heard the submissions.

4.3 We basis records of the case and after hearing and further

upon examining the rival contentions of the Ld AR and the Ld DR

canvassed before us are of the considered opinion that the

“Impugned Order” while the first appeal of the Assessee was

pending before the first appellate authority, the application for

condonation dated 31.05.2022 PAPER BOOK page 200& 201

was pending before Ld PCIT for condonation of delay in

filling Form No:-10IC for Assessment Year 2020-21 & Ld PCIT

ought to have condoned the delay. We are surprised by the

submission of Ld SDR that the office of PCIT II was not in the

existence on 31.05.2022 & application submitted by the Assessee

does not bear the seal & date of receipt of Dept’s Receipt Section

& thus making it impossible to confirm it’s receipt hence there no

evidence on record whether such an application was filed or not.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 The Ld AR had submitted that the Assessee is to be believed

& trusted. Why would the Assessee say falsely particularly so

when the Assessee was craving for a relief inform of

condonation in filling form 10IC which was a matter of his

right. Be that as it may the Assesseee has filed for 10IC on

30.09.2023 & same is placed on record too for Assessment Year

2023-24. Now the question is what happens to for the

Assessment Year 2020-21. The Assessee basis ITR has claimed

the benefit of 115BAA for Assessment Year 2020-21 [PAPER

BOOK Page 4], the benefit was denied vide earlier order u/s

143(1) bearing No: -CPC/2021/U6/243273066 dt 01.07.2022,

further again the benefit was denied u/s 154 vide 154 order

bearing No: - CPC/2021/U6/325620616 dt 30.02.2023, and

further by the Ld CIT(A) basis reasons given in the Impugned

order vide Para 6.3. In sum and substance, the Ld CIT(A) has

held that the application of the Assessee for the condonation of

delay is pending and no decision is taken therefore action of CPC

is denying the option of Section 115BAA is in order. Under

these peculiar facts & circumstances we are of the considered

opinion that the difficulty faced by the Assessee at the material

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 time and place due to Covid-19 and technical glitches are all

genuine. It was not only the Assessee but there were also the

other Assessee who all were similarly situated, it is perhaps

for this reason CBDT issued circular No:- 6/2023 dt 17.03.2023

which prompted the Assessee to make a representation dt

31.05.2022 however there was an outer limit of 3 months from

the end of the month in which said circular was issued. The

Assessee’s application dt 31.05.2022 was however within the

said time limit though the factum of it’s receipt is disputed

by the Dept. However, basis Para 4.3 of our Order dt 30.09.2025

in ITA No: -841/Ind/2024 Assessment Year 2021-22 in case of

Sanjana Clothings Pvt Ltd case we have observed and noted that

there was yet another circular No: -19/2023 dt 23.10.2023 for AY

2021-22 and further leeway was given to the Assessee to file form

10IC on or before 31.01.2024 or 3 months from the end of the

month in which the said circular was issued whichever is later.

We observe and note that the Assessee has exercised such option

on 30.09.2023 but for 2023-24 leaving behind the Assessment

Year 2020-21 for reasons best known. Be that as it may the

surrounding circumstances as narrated by the Ld AR since

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 inception of filing ITR till Impugned Order are noted by us

and we find that the Ld AR contentions are all genuine. We

concur with same. Therefore, we set aside the Impugned Order

and direct CPC to “open the window” even for Assessment

Year 2020-21 to enable the Assessee to upload the form 10IC

so that the Assessee can get the benefit u/s 115BAA for

Assessment Year 2020-21, correspondingly we direct the CPC

to give benefit u/s 115BAA upon uploading of such form 10IC

by verifying the ITR returns and accompanying documents. It

is a case where the Assessee was disabled due to “Covid-19” &

“System Failure” to upload Form 10IC. Further steps in the

form of Rectification order u/s 154, Representation before PCIT

for delay condonation, the first Appeal including claim in the ITR

for 115BAA all show Assessee’s genuineness & bonafide

Intention. Under these facts the Judgment of the Hon’ble

Supreme Court in case of Wipro Ltd (supra) rely upon by SDR is

distinguishable.

4.5 Accordingly in view of the aforesaid Impugned order is set

aside and matter is remanded back to CPC with directions as

aforesaid.

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Jagdamba Ice and Cold Storage Pvt. Ltd ITA No. 811/Ind/2025 AY-2020-2021 5 Order

5.1 The appeal of the Assessee is allowed for Statistical

Purpose.

Pronounced in open court on 30.10.2026.

Sd/- Sd/- (ARVIND SONI) (PARESH M. JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक/Dated : 30/10/2026

Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File

Akhilesh Kumar Digitally signed by Akhilesh Kumar Date: 2026.11.02 17:22:22 +05'30' By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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