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Facts
The assessee, an individual and partner in a firm requiring tax audit, filed her Income Tax Return for AY 2023-24 on 11-09-2023, opting for the new tax regime under Section 115BAC by filing Form 10IE on the same date. Her return was processed by CPC under the old tax regime, and the CIT(A) dismissed her appeal, incorrectly holding the due date for filing the return as 31-07-2023.
Held
The Tribunal held that the correct due date for filing the return for an assessee who is a partner in a firm requiring tax audit was 31-10-2023. Since the assessee filed her original and revised returns, along with Form 10IE, within this extended due date, the tax computation should be done as per the new tax regime under Section 115BAC.
Key Issues
Whether the assessee validly opted for the new tax regime under Section 115BAC by filing Form 10IE and the return of income within the correct due date, given her status as a partner in a tax-audited firm.
Sections Cited
115BAC, 115BAC(5), 139(1), 139(5), 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: Dr. BRR Kumar & Ms. Suchitra Kamble
आदेश/ORDER Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 30-09- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2023-24.
The grounds of appeal
are as under:- “1. The learned ADDL./JCIAT(APPEALS) has grievously erred both in law and on facts in upholding I COMPUTATION OF TAX made by Id AO/CPC-Bangluru by not accepting the grounds of the appellant that the option u/s 115BAC(5) by filing Form No: 10E was exercised within the time prescribed for filing Income tax return u/s 139(1) which was filed on 11.09.2023 and revised on 21.10.2023 as the appellant is a partner in a firm requiring tax audit. The tax was rightly computed by the appellant as per law. It be so held now.
2. The ld Addl./JCIT further grievously erred both in law and on facts in not appreciating that as noted by himself at para 4.3 of his order and submissions reproduced at page 3 to 5 of his order, its was evident that as per the copies of Return of Income. Form 10E etc the Form 10E was filed within time prescribed u/s 139(1) and hence his observation that due date of filing Return was Alpa Harshadbhai Gandhi, A.Y. 2023-24 31.07.2023 is patently wrong and against facts and law. It be so held now and Tax as calculated by appellant as per New Tax Regime be directed to be accepted.
3. The ld Addl./JCIT (Appeals) erred both in law and on facts in distinguishing the various decisions cited before him which are squarely applicable and there by erred in not accepting the submissions made to him. It be so held now.
4. Addl./JCIT(Appeals) The ld NFAC/CIT(A) ought to have allowed the appeal of the appellant in toto and deleted the erroneous demand of Rs. 80,000/- .It be so directed now.
5. The appellant craves leave to add, alter, modify or delete any of the grounds at the time of hearing.”
The assessee is an individual and filed return of income for assessment year 2023-24 on 11-09-2023 with option u/s. 115BAC of the Act. Form 10IC was filed to exercise option to file u/s. 115BAC which is for availing benefits under new tax regime. Form 10IE was filed on 11-09-2023, the due date for filing of return of income u/s. 139(1) of the Act was 31-07-2023. As per the intimation, the said return was filed on 11-09-2023. It was further revised and filed u/s. 139(5) on 21-10-2023, declaring a total income of Rs. 19,54,960/-. The return was processed by the Assessing Officer CPC u/s. 143(1) of the Act vide intimation order dated 31-01-2024 computing the total income at Rs. 19,54,960/-. The computation of tax was not done as per the provisions of section 115BAC of the Act (New Tax Regime) and was done as per the old tax regime.
The assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
The ld. A.R. submitted that the assessee has taken option u/s. 115BAC(5) by filing Form 10IE as per time prescribed for filing income tax return u/s. 139(1) on 11-09-2023 and revised on 21-10-2023. As the assessee is a partner in a firm requiring tax audit, the tax was rightly computed by the assessee as per Alpa Harshadbhai Gandhi, A.Y. 2023-24 the law and has submitted the same as per new tax regime. The ld. A.R. submitted that the observation made by the CIT(A) that the due date for filing return was 31-07-2023 is not correct as the assessee calculated her tax as per the new tax regime and has filed the return within the due period.
The ld. D.R. relied upon the assessment order and the order of the CIT(A).
We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that the assessee is a partner of partnership firm requiring tax audit as the assessee is receiving remuneration from the said partnership firm. The due date of filing return was 31st October, 2023 and not 31st July, 2023 as observed by the CIT(A). Thus, the assessee filed her income on 11-09-2023 which is well within the due date of filing of return i.e. 31-10-2023 and the revised return was also filed on 21-10-2023 prior to the said due date i.e. 31-10-2023. Form 10IE was also filed on 11-09-2023. Thus, the observation made by the CIT(A) was not right and the tax has to be calculated as per the new tax regime as the assessee has rightly filed the return as per the requirement under the income tax provision being the partner of the partnership firm which requires to file return as per audited account of the firm.
In the result, the appeal of the assessee is allowed.