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Facts
The assessee, Cosmo Specialty Chemicals P. Ltd., challenged the denial of tax regime benefits under section 115BAB of the Income Tax Act for AY 2023-24. This issue had previously been decided in the assessee's favor by the Tribunal for AY 2021-22 and 2022-23, where the benefit was allowed despite Form 10ID being filed with a revised return under section 139(5) instead of within the due date under section 139(1). The assessee argued that the current issue was identical to the preceding years' adjudications.
Held
The Tribunal noted that the facts for the impugned assessment year (AY 2023-24) were identical to those in the preceding years. Relying on its own previous orders which granted the benefit of section 115BAB to the assessee, the Tribunal found no reason to take a different view. Accordingly, the Assessing Officer was directed to allow the benefit of section 115BAB to the assessee, and the impugned order denying the benefit was set aside.
Key Issues
Whether the benefit of the tax regime under section 115BAB of the Income Tax Act can be denied solely because Form 10ID was not filed within the due date specified under section 139(1).
Sections Cited
Section 115BAB, Section 115BAB(7), Section 139(1), Section 139(4), Section 139(5), Income Tax Act, 1961
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Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)/Additional Joint Commissioner of Income Tax (Appeals)-4, Chennai (hereinafter referred to as 'the CIT(A)') dated 26.04.2024, for assessment year 2023-24.
Dr. Rakesh Gupta, appearing on behalf of the assessee submits that solitary issue on merits in appeal is denial of benefit of tax regime u/s. 115BAB of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). He submitted that the issue is identical to the one adjudicated by the Coordinate Bench of Tribunal in (AY 2023-24) assessee's own case in for AY 2022-23 vide order dated 10.09.2024. He placed on record copy of the aforesaid order.
The ld. DR vehemently defended the impugned order. However, he fairly stated that the issue in present appeal is identical to the one considered by the Tribunal in assessee's own case in the preceding assessment year.
Both sides heard. The assessee in appeal has raised as many as six grounds. The effective ground for adjudication on merits is ground no. 2 and 3 of appeal assailing denial of benefit of new tax regime opted by the assessee u/s. 115BAB of the Act. I find that in AY 2021-22 and 2022-23, the Revenue in similar manner had denied the benefit of section 115BAB of the Act to the assessee. The assessee carried the issue in appeal to the Tribunal. The Tribunal decided the issue in favour of the assessee and directed the Assessing Officer (AO) to allow the benefit of section 115BAB of the Act. For the sake of ready reference, relevant extract of the Tribunal order in (supra) is extracted herein below: 3. Dr. Rakesh Gupta, appearing on behalf of the assessee submitted that in accordance with provisions of section 115BAB(7) of the Act, the assessee was required to file Form 10ID along with the return of income within the time prescribed u/s. 139(1) of the Act. The assessee filed return of income for AY 2021- 22, the assessee exercised one time option for new tax regime in AY 2021-22 and filed Form 10ID alongwith return of income within the time prescribed u/s. 139(4) of the Act. The benefit of section 115BAB of the Act was denied to the assessee in AY 2021-22. 3.1. In appeal before the Tribunal in ITA No. 809/Del/2024 for AY 2021-22, the Tribunal held that the assessee is eligible for benefit of section 115BAB of the Act. Merely for the reason that return of income was not filed within the due date as specified u/s. 139(1) of the Act, benefit of section 115BAB of the Act cannot be denied. Since, benefit of section 115BAB of the Act has been allowed to the assessee in first year of claim, the benefit of section 115BAB cannot be denied in the subsequent assessment year.
(AY 2023-24) 4. Per contra, Smt. Shivani Bansal representing the department strongly supported the impugned order and prayed for upholding the same.
5. Both sides heard. In AY 2021-22, the co-ordinate Bench has allowed the benefit of section 115BAB of the Act to the assessee holding as under: 5. Upon careful consideration, I find that the assessee’s claim is cogent as benefit of Section 115BAB cannot be denied merely on the ground that Form 10ID was not filed within due date of Section 139(1) but was filed on 19.05.2021 with revised return u/s. 139(5) within the permissible time. However, I note that facts submitted in this case need to be verified from the factual details available with the Assessing Officer. Accordingly, I remit back the issues to the file of the Assessing Officer with the directions to examine the submissions of the assessee and decide the appeal accordingly. Since, the assessee has been granted the benefit of section 115BAB of the Act in the first year of exercising option by the Tribunal, now the benefit of said section cannot be denied to the assessee in the subsequent assessment year solely for the reason that Form 10ID was filed beyond time specified u/s. 139(1) of the Act in first year.
I find merit in submission of the assessee. The AO is directed to allow the benefit of section 115BAB of the Act to the assessee. In the result, appeal of the assessee is allowed.
Since, facts in the impugned assessment year are identical, I see no reason to take a different view, hence, for parity of reasons the impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Monday the 09th day of December, 2024.