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Facts
The assessee, Moyalan Electrodes Pvt. Ltd., filed its return of income opting for a concessional tax rate under Section 115BA of the Income Tax Act. The CPC processed the return under Section 143(1) without granting the benefit, and a subsequent rectification petition under Section 154 was rejected. The CIT(A) upheld the CPC's action, citing the assessee's failure to file Form 10-IB within the prescribed period.
Held
The tribunal held that the filing of Form 10-IB is merely procedural and that the assessee claimed to have faced technical glitches while uploading the form. Considering this, the tribunal restored the matter to the file of the CPC for a consequential order, directing them to take Form 10-IB into consideration.
Key Issues
Whether the benefit of concessional tax rate under Section 115BA can be denied due to the non-filing of Form 10-IB within the due date, particularly when technical glitches are cited as the reason.
Sections Cited
115BA, 143(1), 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM
O R D E R These appeals filed by the assessee are directed against the orders of the Commissioner of Income Tax (Appeals)-7, Mumbai [CIT(A)] dated 14.08.2025 for Assessment Years (AY) 2021-22 & 2022-23.
Since identical issues and facts are involved in these appeals, they are heard together and disposed of by this common order.
For the sake of convenience and clarity the facts relevant to the appeal bearing for AY 2021-22 are stated herein.
Brief facts of the case are that the appellant is a company incorporated under the provisions of Companies Act, 1956. It is engaged in the business of production and marketing of welding electrodes. The return of income for AY 2021-22 was filed on 06.02.2022 declaring income of Rs.59,27,140/-. The appellant also opted for concessional rate of tax @ 22% as prescribed under the provisions of section 115BA of the Income Tax Act, 1961 (the Act).The said return of income was processed by the CPC u/s. 143(1) of the Act vide intimation dated 07.07.2022 without granting benefit of concessional rate of tax u/s. 115BA of the Act without specifying any reason.
Aggrieved, a rectification petition was filed u/s. 154 of the Act which came to be rejected on 18.09.2024.
Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the CPC on the ground that the appellant had failed to file Form 10-1C within the prescribed period.
Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal.
The learned counsel for the assessee submits that the appellant could not upload Form 10-1C within the due date prescribed on account of technical glitches in upholding the Form. It is further submitted that filing of the prescribed form to enable Moyalan Electrodes Pvt. Ltd. opting for concessional rate of tax is merely a procedure in nature. In this connection he placed reliance on the decision of the Hon'ble Madras High Court in the case of MRF Ltd. v. CBDT [2025] 162 taxmann.com 776 and Hon'ble Delhi High Court in the case of VRG Electronics (P.) Ltd. v. PCIT [2025] 178 taxmann.com 448.
On the other hand, the learned Sr. DR opposed the above submissions.
I heard the rival contentions and perused the material available on record. The CPC had denied concessional rate of tax merely on the ground that the prescribed form for availing concessional rate of tax as prescribed u/s. 115BA of the Act was not filed within the due date prescribed. Keeping in view that filing of the prescribed form to avail concessional rate of tax is merely procedural in nature and also the fact that the appellant was facing technical glitches while uploading the prescribed form. I, therefore, restore the matter to the file of CPC to pass consequential order taking into consideration the Form 10-1B. Appeal of the assessee is partly allowed for statistical purposes.
Order pronounced in the open court on 19th November, 2025.