BADA SAAB PROPERTIES PVT LTD,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 4(1)(1), MUMBAI

On perusal of the abovementioned decisions and the circular, it is observed that the Hon’ble Gujarat High Court in the case of Surat Smart City Development Ltd. (supra) had distinguished the decision of the Hon’ble Apex Court in the case of Pr. CIT vs. Wipro Ltd. [2022] 140 taxmann.com 223 stating that it was a case where filing declaration u/s 10(B)(8) of the Act in accordance with the provision of section 10(B)(5) of the Act, which is to verify the correctness of the claim by the assessee at the time of filing of return for claiming exemption u/s 10(B) of the Act, in which not only the same is mandatory but also the time limit for filing the declaration was also held to be mandatory for granting relief to the assessee but here in the present case it was for availing benefit of concessional rate of tax @ 22% by filing Form 10-IC subject to satisfaction of the conditions prescribed in the provision. It was further held that the delay in filing the Form 10-IC ought to be condoned and that the provision of section 119(2)(b) of the Act are intended to solve the grievances and hardship caused to the assessee which in fact had relied on the decision of the Hon’ble Madras High Court in the case of R. Seshammal v. ITO [1999] 237 ITR 185 (Madras) according to which the Board is vested with powers to render justice in circumstances of limitations, where the Board has arbitrarily rejected the assessee’s request for refund. This emphasizes that the Courts have taken a liberal view in condoning the delay in filing Form 10-IC by avoiding rejection of the claim on mere technicalities. We also draw support from the decision of the Hon’ble Gujarat High Court in the case of KGY Glass Industries (P.) Ltd. (supra) where it had condoned the delay in uploading Form 10-IC on ITBA portal due to technical error with no fault of the assessee. Here in the present case there can be no denial that the assessee intended to comply with the conditions but had faulted by uploading Form 10-IB instead of Form 10-IC which are prone to happen and due to such technical error the assessee cannot be left remediless, rather allow the assessee to rectify the error when the assessee is entitled to claim concessional rate of tax as per section 115BAA of the Act, otherwise if it satisfies the other conditions stipulated by law. We, therefore, deem it fit to direct the Ld. AO to consider the Form 10-IC which was subsequently filed by the assessee by condoning the delay in uploading the said form and to allow the assessee’s claim of concessional tax rate if the assessee, otherwise satisfies the conditions enumerated as per the provisions of law.

In the result, the appeal filed by the assessee is hereby allowed. Order pronounced in the open court on 23.02.2026