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Facts
The assessee filed income tax return for AY 2023-24, opting for the new tax regime under Section 115BAC. The CPC, while processing the return u/s 143(1), denied this benefit on the ground that Form 10IE was not filed by the due date, even though it was filed later. The assessee appealed this denial.
Held
Relying on its previous decision in *Akshay Devendra Birari v. DCIT*, the Tribunal held that the requirement to file Form 10IE is directory, not mandatory. It directed the CPC to amend the intimation by considering the Form 10IE, as it was available at the time of processing, and restored the matter to the CIT(A)/NFAC for fresh factual verification.
Key Issues
Whether the filing of Form 10IE by the due date is a mandatory pre-condition for an assessee to avail the benefit of the new tax regime under Section 115BAC of the Income Tax Act.
Sections Cited
Section 115BAC, Section 143(1), Section 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2023-24 arises against DIN and order no. ITBA/APL/S/250/2024-25/1065367269(1), dated 04.06.2024, passed by the learned CIT(Appeals)-12, Mumbai in appeal no. ADDL/JCIT(A)-12 MUMBAI/10001/2022-23, in proceedings u/s 250 of the Income-tax Act, 1961, hereinafter referred to as the “Act”. Case called twice. None appears at assessee’s behest. He is accordingly proceeded ex parte.
The assessee pleads the following substantive grounds in the instant appeal. “1 That the Ld. AddI/JCIT (Appeal) as well as Ld.AO CPC has acted wrongly and against the law in not allowing taxation benefit u/s 115BAC (new Regime of taxation) while processing u/s 143(1) the return for this year as the form 10IE was operative for this year and not withdrawn by the assessee. 2 That Ld. AddI/JCIT (Appeal) has acted wrongly on facts and in law in rejecting the appeal of assesse saying that "the appellant has not filed form 101E for AY 2023-24" which is wrong as per Act because form 101E filed in earlier year and not withdrawn is valid for coming years, and assesse is not required to file every year, so the calculation made by CPC under old regime is wrong and is liable to be corrected. 3 That the benefit u/s 115BAC is legally allowable to assessee this year so the calculation made by CPC under old regime is wrong and is liable to be corrected. 4 That the order of Ld. AddI/JCIT (Appeal) as well as of Ld. A. O. is quite arbitrary, illegal and unjust. 5 The appellant reserves its right to advance such other grounds before or at the hearing, which it may consider fit and appropriate, for which it craves leave to amend, alter or otherwise modify the grounds appearing hereinbefore with the kind permission of the ITAT.”
Learned DR vehemently argued during the course of hearing that both the lower authorities have rightly rejected the assessee’s contentions for having not filed Form 10IE for the purpose of opting under the new tax regime, which is in the nature of mandatory condition.
I have given my thoughtful consideration to the assessee’s pleadings and Revenue’s vehement contentions supporting their respective stands. Suffice to say, this Tribunal in Akshay Devendra Birari v. DCIT dated 05.06.2024 has already settled the issue against the department that such a compliance of filing of Form 10IE is only directory than mandatory in nature as under:
We heard the ld. Sr.DR and perused the relevant material on record. The solitary issue that arises for our consideration in the present appeal is whether the CPC was justified in denying the benefit of New Tax Regime. Admittedly, the appellant had failed to submit the prescribed Form No.10IE in order to claim the benefit of New Tax Regime before the due date for filing the return of income. However, the appellant had filed the said form on 10.01.2024 on which date the CPC had processed the return of income u/s.143(1)(a) denying the benefit of New Tax Regime. In any event, it is not a mandatory requirement for filing of Form No.10IE but directory in nature. The Form No.10IE was very much available with the CPC and the CPC ought to have considered the same allowing the benefit of New Tax Regime. Therefore, we direct the CPC to amend the intimation by taking into consideration the Form No.10IE, as the same was available with the CPC at the time of processing the return of income. We order accordingly.”
I adopt the forgoing detailed discussion mutatis mutandis and restore the assessee’s instant sole substantive ground back to the CIT(A)/NFAC for his fresh factual verification as per law. Ordered accordingly.
7. This assessee’s appeal is allowed for statistical purposes.
Order pronounced in open court on 14.11.2024.