ACIT-2(3)(1), MUMBAI vs. TATA SONS PVT. LTD., MUMBAI

Now coming to the facts of the relevant assessment year, following chronology of events have been stated before us:- 27th October 2023 Tax Audit filed – option continued for section 115BAA 26th November 2023 Return of income- ITR 6 filed (continuing option for section 115BAA) wherein acknowledgment details of Form 10-IC filed in AY 2022-23 were provided. 6th December 2023 143(1)(a) issued proposing adjustment of disallowance of set of loss of AY 2021-22 (Page no 22 of 30 Impugned intimation u/s.143(1) 2nd January 2024 Response to 143(1)(a) submitted online and before JAO. TSPL made detailed submission as to why adjustments of disallowance of set of loss were not required 20th July 2024 Impugned Intimation u/s 143(1)

Against the said denial of benefit of lower tax rate @22% u/s.115BBA without any reasons assessee had filed an appeal before the First Appellate Authority. However, in the meantime, a show-cause notice was issued by the ld. AO in response to the application filed u/s.154 dated 12/08/2024 wherein the ld. JAO stated that there is discrepancy in Form 10IC in as much as in the Form "while the declaration is on the name of Mr. Chandrasekaran Natarajan, on behalf of the assessee company, at the bottom the form has been signed by Mr. Eruch Noshir Kapadia.” Thereafter, TSPL realized that there was a technical glitch in the portal in as much as the name of the person verifying the form is shown as the same person whose name is Tata Sons Pvt. Ltd. selected as the principal contact on the portal. Inadvertently on 23 February 2024, TSPL submitted a copy of Form 10-IC by downloading the same afresh from the Income tax portal while using the principal contact selected on the portal as Mr. Eruch Kapadia (CFO of TSPL) and therefore, the Form 10IC (which was originally signed and verified by the Chairman), when it was downloaded again, it mentioned the name of Mr. Eruch in the signatory part. Assessee in response to the ld. JAO was as under:- “On the income tax website (https://eportal incometax.gov.in/iec/foservices/#/login) ('e-filing portal"), a corporate taxpayer is required to register details of all the key persons (to be entered under the profile tab) to use the functionality of the website le to file return of income, forms, file an appeal, rectification, foreign remittance forma etc. Therefore, after login on the e-filing income-lax portal, taxpayers can submit the details of its key person on the portal and register their respective Digital Signatures. In case the taxpayer has to sign any retum/ Fom it has to first select the key person as required under law and designate it as a principal contact as only or person can sign the Form. Hence, depending on the nature of filings to be made, on the e-filing portal, t principal contact is selected. TSPL has registered 3 key persons on the income lax portals. Mr. Chandrasekaran Natarajan ("Chairman"), Mr. Eruch Kapadia ("CFO") and Mr. Saurabh Agarwal ("Director) and have registered and linked their DSC for various filings required under the Income Tax Act, 1961 ("Act").

All these facts were also explained before the ld. CIT (A) who allowed the claim of the assessee holding that assessee has opted for taxation u/s.115BAA during the A.Y.2022-23 for the first time and had filed the requisite form 10-IC on 21/11/2022 which was applicable for the subsequent assessment years, if not Tata Sons Pvt. Ltd. withdrawn by the assessee. Admittedly, assessee has not withdrawn the option exercised u/s.115BAA for A.Y. 2023-24 and during the ITR assessee has chosen the new tax regime, therefore the benefit of section 115BAA will continue. After incorporating the relevant part of the ITR and also the intimation u/s.143(1) for A.Y.2022-23, he held that even the ld. AO has computed the tax liability @22% on the basis of Form 10-IC for A.Y.2022-23.

We have heard both the parties at length and also perused the relevant facts brought on record. It is an undisputed fact that assessee has opted for new tax regime u/s.115BBA in the A.Y.2022-23 and also filed requisite Form 10-IC on 21/11/2022. While processing the return, CPC / ld. AO has accepted the new tax regime u/s.115BBA. Once Form 10-IC has been filed in the preceding assessment year which is followed in the subsequent assessment years also, then there is no reason to deny any benefit of Section 115BBA. The intimation u/s. 143(1) for A.Y.2023-24 on the ground that Form 10-IC was not filed or which was filed later on the demand of the ld. AO, then it was found that it was signed by other person. It has been clarified that, in the login of e-file income tax portals, tax payers can submit details of its key persons on the portal and register their respective digital signature. The tax payer has to sign any return / form after selecting key person as required under the law and designated as a principal contact as only one person can sign the form. The assessee has registered three key persons on the income tax portal, i.e. i) Mr Chandrasekaran Natarajan Tata Sons Pvt. Ltd. ("Chairman"), ii) Mr Eruch Kapadia ("CFO"), and iii) Mr Saurabh Agarwal ("Director). It has been demonstrated before us that if uploaded form is downloaded today, then all the contents of the downloaded form will remain the same except the name of signatory person will changes automatically and the name and PAN of the key person who at the time of login is the principal contact trying to download the form. This fact has also been accepted by the LD. DR that this is system generated the change that once signatory part of the downloaded Form undergoes a change the "downloaded acknowledgment" remains constant with the original verifier's PAN even when the principal contact is changed on the portal to re-download the Form 10-IC. Thus, if the Form 10-IC uploaded on 21/11/2022 is downloaded today under all the three different profiles, i.e., all three key person being taken as principal contact, all the contents of the form will remain the same but the name and PAN of the person who has digitally signed the form undergoes change. Assessee has also submitted both the downloaded from wherein Profile Chairman, Profile CFO, Profile Director has been given and also attached the complete Form 10-IC alongwith acknowledgements downloaded upon changing / modifying the principal contact details on the Income Tax portal. Thus, there was not infirmity and ld. AO has erred in denying the benefit of new tax regime u/s.115BBA. Accordingly, order of the ld. CIT (A) is confirmed and appeal filed by the Revenue is dismissed.