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Facts
The assessee initially filed an income tax return for A.Y. 2022-23 under the Old Tax Regime. Subsequently, a revised return was filed after the due date (05.08.2022 versus 31.07.2022), attempting to opt for the New Tax Regime under Section 115BAC. The AO/CPC processed the return under the Old Tax Regime as the option for the New Tax Regime was not exercised within the prescribed due date.
Held
The Tribunal affirmed that the option to avail the New Tax Regime under Section 115BAC(5) must be exercised within the due date for filing the original return under Section 139(1). As the revised return, opting for the New Tax Regime, was filed beyond this due date, the option was invalid, and fiscal statutes demand strict compliance.
Key Issues
Whether the option to choose the New Tax Regime under Section 115BAC, exercised through a revised return filed after the due date for the original return, is valid.
Sections Cited
139(1), 139(5), 115BAC, 115BAC(5)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, RAIPUR BENCH “SMC”, RAIPUR
Before: SHRI PARTHA SARATHI CHAUDHURY
आदेश / ORDER
PER PARTHA SARATHI CHAUDHURY, JM
The present appeal preferred by the assessee emanates from the order of the Ld.CIT(Appeals)/NFAC, dated 11.08.2025 for the assessment year 2022-23 as per the grounds of appeal on record.
The brief facts in this case are that the assessee filed the original return of income for A.Y.2022-23 on 13.07.2022 u/s.139(1) of the Income Tax Act, 1961 (for short ‘the Act’) opting for Old Tax Regime. Further, the assessee furnished a revised return u/s.139(5) of the Act, dated 05.08.2022 after the due date for filing return u/s.139(1) of the Act opting for New Tax Regime. The sub-section (5) of Section 115BAC of the Act states that nothing contained in the section 115BAC shall be applicable if the return of income along with the option is not exercised within the due date prescribed u/s.139(1) of the Act. It would be pertinent to extract Section 115BAC and the corresponding sub-section (5) of the Act which reads as follows: “Following section 115BAC shall be inserted by the Finance Act, 2020, w.e.f 1-4-2021: Tax on income of individuals and Hindu undivided family. 115BAC(5) Nothing contained in this section shall apply unless option is exercised in the prescribed manner by the person,-
(i) having income from business or profession, on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the 1st day of April, 2021 and such option once exercised shall apply to subsequent assessment years; (ii) having income other than the income referred to in clause (i), alongwith the return of income to be furnished under sub-section (1) of section 139 for a previous year relevant to the assessment year: Provided that the option under clause (i), once exercised for any previous year can be withdrawn only once for a previous year other than the year in which it was exercised and thereafter, the person shall never be eligible to exercise option under this section, except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available."
It was rightly observed by the Ld.CIT(Appeals)/NFAC that in the case of the assessee the date prescribed for exercising the option u/s. 139(1) of the Act was 31.07.2022. Therefore, the A.O while considering the return filed u/s.139(5) of the Act, dated 05.08.2022 had calculated taxes according to the old tax regime because nothing contained in the Section 115BAC will apply since the returned was not furnished within the due date specified u/s.139(1) of the Act i.e. 31.07.2022 in the case of the assessee. Hence, the appeal was dismissed by the Ld. CIT(Appeals)/NFAC.
I have carefully considered the facts and circumstances and heard the submission of the parties. Admittedly, as the facts emanating in the foregoing paras, which are conceded by the Ld. Counsel for the assessee as well as by the Ld. Sr. DR, therefore, it is an admitted fact that the assessee had furnished revised return u/s.139 (5) of the Act, dated 05.08.2022 after due date for filing return u/s. 139(1) of the Act opting for New Tax Regime. That since the due date for exercising the option in the case of the assessee was 31.07.2022, and since revised return was filed on 05.08.2022, the option for New Tax Regime as exercised by the assessee was not accounted for by the A.O/CPC. That going as per the provisions of the Act, specifically Section 115BAC and sub-section (5) of the Act, the action of the A.O/CPC stands correct.
The Ld. Counsel for the assessee though principally admitted these facts, however, relied on a decision of the Co-ordinate Bench of the Tribunal, Pune in the case of Akshay Devendra Birari Vs. DCIT, CPC, dated 05.06.2024. However, since the mandate of the legal provision has not been complied with by the assessee and for the fact that in case of the fiscal statutes, the provision has to be interpreted in its strictest form, therefore, the case law relied on by the Ld. Counsel shall not come to the rescue of the assessee. The said decision cannot override the provisions of the Act. That it has been spelled out through various decisions of the Hon’ble Apex Court that there cannot be any liberal interpretation in respect of fiscal statutes and the provisions of the Act has to be strictly complied with. Considering the totality of the facts, I do not find any infirmity with the findings of the Ld.CIT(Appeals)/NFAC which is hereby upheld.
As per the above terms grounds of appeal raised by the assessee are dismissed.
In the result, appeal of the assessee is dismissed. Order pronounced in open court on 08th day of September, 2025.