MEENA J PATEL,MYSORE vs. INCOME TAX OFFICER, WARD-2(4), MYSURU

Per Laxmi Prasad Sahu, Accountant Member : This is an appeal filed by the assessee against Addl.CIT/JCIT’s Order vide DIN & Notice No: ITBA/APL/S/250/2024-25/1071266105(1)dated 16.12.2024, wherein it was observed that assessee is not eligible for new tax regime .Assessee filed return of income for the Assessment Year 2023-24 dated 26.12.2023 declaring total income of Rs.43,50,580/- under new tax regime as per section 115BAC of the Act and Form 10-IE was filed on 22.01.2022 bearing acknowledgement No.960568430220122 and while filing return, assessee opted new tax regime. Accordingly, he collected tax, computed due tax and uploaded return and acknowledgment was generated. While processing the return on 17.09.2024 under section 131(1) of the Act, it Page 2 of 4 is clearly mentioned that at top of Sl. No.1 taxation option under 115BAC of the Act “YES” provided by the tax payer, as computed under section 143(1) of the Act and raised a demand of Rs.83,970/-. 2. Aggrieved from the above Order, assessee filed appeal before the learned CIT(A) and observed that assessee failed to file any valid Form 10-IE along with return of income filed within due date specified under sub section 1 of section 139 for the concerned Assessment Yer 2023-24 and dismissed appeal of the assessee. 3. Aggrieved from the above Order, assessee filed appeal before the Tribunal. The learned Counsel reiterated the submissions made before the learned CIT(A) and submitted that while filing return of income in the return form assessee opted new tax regime as per section 115BAC of the Act. Accordingly, tax was calculated and form 10-IE acknowledgement No. was put in the respective column. Accordingly, the due tax was computed. However, while processing the return, the benefit of new tax as per section 115BAC of the Act was not given to the assessee. Filing of Form 10IE is only once and every year it is not required to file as per extended due date by the CBDT for filing return of income for the Assessment Year 2021-22 was 15.03.2022 as per CBDT Circular No.01/2022 in F.No.225/49/2021/ITA-II dated 11.01.2022. Assessee was granted benefit under new tax regime by Order dated 26.06.2025 by the ITO, Ward – 2(4), Mysuru, in the rectification proceedings for the AY 2021-22 order dated 26.06.2025. 4. The CPC wrongly computed tax of the assessee under old regime and without given any prior intimation to the assessee and there is no reason given by the CPC for computing the tax under old regime which is in violation of the principles of natural justice. Once Form 10-IEis filed, it is not required to Page 3 of 4 file every year as per provision of section 115BAC of the Act. Once the Department has accepted for Assessment Year 2021-22 then in the subsequent years the CPC cannot deny to give benefit under new tax regime. He referred to Paper Book containing Page Nos.1 to 41 and submitted that assessee is eligible for benefit of new tax regime. Assessee has not claimed any benefit under Chapter VI A on the interest income received. 5. On the other hand, learned DR relied on the Order of lower authorities and submitted that the requisite Form and ITR was not filed in time therefore the precondition to get benefit has not been fulfilled by the assessee. 6. Considering the rival submissions and on perusal of the entire material available on record and Orders of authorities below, we noted that assessee has filed return of income belatedly under section 139(4) of the Act on 26.12.2023. Due date was 31.07.2023. Assessee had opted new tax regime by way of filing Form 10-IE on 22.01.2022 vide acknowledgement No.960568430220122 which is within the due date as prescribed by CBDT vide Circular No. noted supra. AO has allowed benefit under new tax regime as per his rectification Order dated 26.06.2025 by ITO, Ward – 2(4), Mysuru, vide reference No.154/JAO/ITO/W-2(4)/Mys/2025-26 dated 26.06.2025. Once Form 10-IE is filed by the assessee and accepted by the Department, assessee is not required to file Form 10-IE every year. As submitted by the assessee it is noted that once Form 10-IE is filed and accepted by the Department, it cannot be filed every year, the computer (Plate Form of the Income Tax Department) does not allow assessee to file Form every year. On going through the provisions, we observed that Form No.10-IE is not required to be filed every year for opting new tax regime as per section 115BAC of the Act. Once it is filed and accepted by the Department it is sufficient to get benefit of section 115BAC of the Act under new tax regime. A similar issue Page 4 of 4 has been decided by the SMC Bench of ITAT Ahmedabad in ITA Nos.2082, 2083(Ahd)2024 reported in (2025) 174 taxmann.com 33 (Ahd – Trib.). Respectfully following the above judgment and on going by the provisions of section 115BAC of the Act, we hold that assessee is eligible to get benefit under new tax regime and the assessee has also while filing the return opted new tax regime. If the assessee was not eligible under new tax regime in spite of the return of income was successfully uploaded and acknowledgement was generated. Accordingly, we allow appeal of the assessee and juri ictional AO is directed to compute the tax as per new tax regime. 7. In the result, appeal filed by the assessee is allowed. Pronounced in the open court on the date mentioned on the caption page. (SOUNDARARAJAN K) Accountant Member- Bangalore. Dated: 11.09.2025. /NS/* Copy to: 1. Appellants 2. Respondent 3. DRP 4. CIT 5. CIT(A) 6. DR,ITAT, Bangalore. 7. Guard file By order