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Facts
The assessee, Ajay Kumar Jhunjhunwala & Sons, appealed against the non-allowance of the benefit of Section 115BAC during the processing of their return under Section 143(1) for AY 2022-23. The CIT(A) had upheld this denial, contending that the assessee had not opted for the new tax regime nor provided proof of filing Form 10-IE for AY 2021-22. The assessee argued that Form 10-IE was duly filed on 10.02.2022 for AY 2021-22, which is valid for subsequent assessment years.
Held
The Tribunal, after reviewing the records, found that Form 10-IE was indeed filed by the assessee on 10.02.2022 for AY 2021-22. The Tribunal concluded that the lower authorities erred in not taking note of this filing and allowing the benefit of Section 115BAC. Consequently, the Tribunal set aside the CIT(A)'s order and directed the AO to grant the assessee the benefit of the new tax regime.
Key Issues
Whether the assessee is eligible for the benefit of Section 115BAC of the Income Tax Act, given the filing of Form 10-IE for the new tax regime.
Sections Cited
Section 250, Section 115BAC, Section 143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, GUWAHATI BENCH, GUWAHATI
Appearances by: Assessee represented by : Devraj Sahu, Advocate Department represented by : Soumendu Sekhar, JCIT Date of concluding the hearing : 06.11.2025 Date of pronouncing the order : 19.11.2025
ORDER
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
The present appeal arises from the order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), dated 30.03.2024, passed by the Ld. Commissioner of Income Tax (Appeals), Additional/Joint Commissioner of Income Tax-1, Lucknow [hereafter “the Ld. Addl/JCIT(A)]. 1.1 In this case, the main grievance of the assessee is a non-allowance of the benefit of section 115BAC of the Act while processing the return under Section 143(1) of the Act by the Ld. AO-CPC. The assessee had submitted that they opted for the new tax regime form 10-UE on 10.02.2022. The Ld. CIT(A) has given a finding in para 6.5 at page 4 of the Ajay Kumar Jhunjhunwala & Sons impugned order that the assessee did not opt for the new regime while filing his return of income for A.Y. 2021-22. It is also recorded in the impugned order that no information was provided by the assessee regarding filing of Form 10-IE.
1.2 Aggrieved with this action, the assessee has filed the present appeal with the following grounds:
“1. The Ld. Assessing Officer has erred in law and in facts in not allowing the benefit of Sec. 115BAC to the assessee, despite filing the relevant form 10IE.
2. The appellant had opted for the new tax regime by filing Form 10IE on 10 Feb 2022 for A.Y. 2021-22, which remains valid for subsequent years. However, the order has incorrectly stated that no option was exercised.”
Before us, the Ld. AR pointed out that the findings given by the Ld. Addl./JCIT(A) where factually wrong as the assessee had duly filed Form 10-IE on 10.02.2022. A copy of this form was placed before us for perusal in a paper book. This form was filed for assessment year 2021-22. For record the first page of the Form is extracted as under:
2.1 The Ld. DR relied on the orders of the authorities below.
We have carefully considered the rival submissions and have gone Ajay Kumar Jhunjhunwala & Sons through records before us, especially the copy of Form 10-IE filed by the assessee. We find that indeed the Form 10IE had been filed by the assessee and the same needed to be taken note of. Accordingly, we find merit in the claim of the assessee and set aside the first appellate order, with a direction to the Ld. AO for allowing the benefit of the new regime of taxation as mandated under Section 115BAC of the Act.
3. In result, this appeal is allowed.
Order pronounced on 19.11.2025