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Facts
The assessee filed its Income Tax Return for AY 2022-23 claiming benefits under Section 115BAB, but the claim was rejected during processing under Section 143(1) because Form 10ID was not attached. The assessee argued that the late filing of Form 10ID was a technical/procedural lapse and should not deny the benefit, but the CIT(A) rejected this contention, leading to a tax demand of Rs. 1,57,41,360.
Held
The Tribunal considered the furnishing of Form 10ID, even if late, as a procedural lapse. In the interest of justice, the case was remitted back to the Assessing Officer (AO) to decide the issues afresh after providing the assessee with an adequate opportunity of being heard.
Key Issues
Whether the benefit under Section 115BAB can be denied due to the late filing of Form 10ID, which is contended to be a procedural lapse.
Sections Cited
115BAB, 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”, NEW DELHI
Before: SHRI SHAMIM YAHYA, & SHRI YOGESH KUMAR US
ORDER
PER SHAMIM YAHYA, AM :
The Assessee has filed the instant Appeal against the Order of the Ld. Addl/JCIT(A)-5, Mumbai dated 29.1.2024, relating to assessment year 2022- 23 on the following grounds:-
1. That the appellant denies its liability of tax demand of Rs. 1,57,41,360/- and accordingly denies its liability to pay interest demanded thereon.
2. That having regard to the facts and circumstances of the case, the Income Tax Department has assessed the assessee’s income and subsequently rasied a demand of Rs. 1,57,41,360/-.
That having regard to the facts and circumstances of the case, the assessee has filed its income tax return for the AY 2022-23 by opting for taxation as per the Section 115BAB of the Income Tax Act, 1961 vide acknowledgement no. 896324171311222 dated 31.12.2022, declaring a total income of Rs. 8,14,87,930/-.
4. That having regard to the facts and circumstances of the case, due to technical gap, the assessee inadvertently late filed Form 101D within the time limit of due date of filing of the income tax return.
That having regard to the facts and circumstances of the case, the assessee should not be denied their rightful entitlement to justice based on a mere technical gap. It is essential to ensure that the principle of justice is upheld and that the assessee is treated fairly and equitably in this situation.
The brief facts of the case are that assessee has filed its return of income on 31.12.2022 declaring total income of Rs. 8,14,87,930 and rejected the claim of taxation u/s. 115BAB of the Act. The said return was processed u/s. 143(1) of the Act wherein, CPC rejected the claim of taxation under section 115BAB on the ground that Form 10ID was not attached. Before the Ld. CIT(A) it was contended that due to technical oversight assessee could not file Form 10ID within stipulated time. It was further contended that for filing Form 10ID is merely a procedural lapse which shall not deprive the assessee of getting the entitled benefits under the Income Tax Act. However, Ld. CIT(A) rejected the aforesaid contention.
3. Against the order of the Ld. CIT(A), assessee is in appeal before us.
We have heard both the parties and perused the records. It is true that in order to claim the benefit of section 115BAB, assessee is required to file Form 10ID within time, as prescribed under the Act. However, the assessee furnished 2 | P a g e Form No. 10ID on 30.12.2022, hence, in our considered opinion, furnishing of Form 10ID may be considered as procedural lapse and in the interest of justice, the issues in dispute are remitted back to the file of the AO with the directions to decide the same afresh, after giving adequate opportunity of being heard to the assessee. We hold and direct accordingly.