Loading judgment…
Facts
The assessee, a private limited company, opted for concessional taxation under Section 115BAA and mentioned it in their ITR-6. However, they failed to file Form 10-IC electronically along with the return. The CPC Bengaluru processed the return under normal provisions and passed an intimation order under Section 143(1).
Held
The Tribunal held that a simple oversight in filing Form 10-IC should not deny the assessee their rightful claim. Natural justice dictates that the matter should be remanded back to the CIT(A) for adjudication on merits after considering the belatedly filed form.
Key Issues
Whether the failure to file Form 10-IC electronically along with the return can lead to denial of concessional taxation under Section 115BAA, and if the matter should be remanded for adjudication on merits.
Sections Cited
115BAA, 143(1), 234B, 234C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH
Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY
Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the assessee against the order dated 29-01-2024 of Ld. Addl./JCIT(A)-3, Bengaluru.
234-Chd-2024- Gateway Private Limited, Ludhiana
2. Grounds of appeal are as under:
1. 1(a). That the Ld. CIT(A) has erred in confirming the taxation of the assessee company under normal provisions wrongly made by CPC, Bengaluru, instead of applying taxation rate as per provisions section 115BAA opted by the assessee company in the ITR filed. 1(b) That the Ld. CIT(A) has erred in law and facts of the case in not appreciating the fact that the assessee company had clearly opted for the newly inserted provisions for taxation u/s 115BAA in the return of income filed as well as clearly mentioned by the Tax Auditors in the Form 3CD at column No 8A. 1(c). That the Ld. CIT(A) has wrongly confirmed the order u/s 143 (1) of CPC, Bengaluru ignoring the fact that the appellant company had filed requisite Form 10-IC.
That the Ld. A.O. has charging interest u/s 234B & 234C which is consequential.
3. That the appellant reserve the right to amend, delete, and substitute, modify or after any one or more of the grounds of appeal at the time of hearing.
Brief facts of the case, as per the order of the Addl. CIT(A), are as under: -
The assessee is private limited company. The appellant has filed the return of income on or before the due date of filing of return and opted for the concessional taxation u/s 115BAA of the IT Act and the appellant had clearly mentioned this fact in ITR 6 in Schedule Part A, but failed to file the prescribed form-10IC electronically. The AO CPC has calculated the tax as per normal provisions and passed the intimation order u/s 143(1). Aggrieved by the order the appellant has filed this appeal.
During proceedings before us, ld. Counsel for the Assessee submitted that by mistake the form No. 10IC was not submitted alongwith the return rather it was submitted later on. But the CPC Bengaluru did not take it into consideration and rejected the claim of the Assessee for concessional taxation u/s 115BBA of the I.T. Act. The Ld. Counsel thus submitted before the Bench that the matter may be remanded back to the CIT(A) with the direction to accept from 10IC filed by the Assessee belatedly and adjudicate the case on merits.
Per contra, the ld. DR relied on the order of the Ld. CIT(A).
We have considered the findings given by the CPC Bengaluru and the Ld. CIT(A) in their respective orders. We find that a simple mistake of oversight committed by the Assessee, should not be a reason to deny its rightful claim under the income Tax Act. Therefore, we are of the considered view that in the fitness of things and keeping in view the element of natural justice to the Assessee, the matter should be remanded back to the file of the CIT(A) for adjudication afresh on merit.
Accordingly, the case is remanded back to the file of the CIT(A) for adjudication afresh on merit, by considering the submissions and documents, if any, produced by the Assessee and the relevant material available on record.
Needless to say, that the CIT(A) shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, appeal of the Assessee is allowed for statistical purposes.
Order pronounced on 03.09.2025