COSMO SPECIALITY CHEMICALS PRIVATE LIMITED,DELHI vs. INCOME TAX OFFICER, WARD 6(1), CR BUILDING, DELHI

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ITA 2766/DEL/2024Status: DisposedITAT Delhi10 September 2024AY 2022-2023Bench: 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.4 pages

AI SummaryAllowed

Facts

The assessee was denied the benefit of Section 115BAB for A.Y. 2022-23. Previously, for A.Y. 2021-22 (the first year of claim), the benefit was initially denied due to Form 10ID not being filed within the due date under Section 139(1) but was later allowed by the Tribunal when filed with a revised return under Section 139(5) within permissible time.

Held

The Tribunal held that since the benefit of Section 115BAB was allowed in the first year of claim by a co-ordinate Bench, it cannot be denied in the subsequent assessment year solely due to the initial late filing of Form 10ID in the first year. The Assessing Officer was directed to allow the benefit for A.Y. 2022-23.

Key Issues

Can the benefit of Section 115BAB be denied in a subsequent assessment year if it was previously allowed by the Tribunal in the first year, despite the initial Form 10ID being filed beyond the Section 139(1) due date but within Section 139(5) for the first year?

Sections Cited

115BAB, 115BAB(7), 139(1), 139(4), 139(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI

Hearing: 10/09/2024Pronounced: 10/09/2024

ORDER

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-4 Chennai (hereinafter referred to as 'the CIT(A)') dated 14.05.2024, for assessment year 2022-23.

The solitary issue raised in appeal by the assessee in denial of benefit of new tax regime u/s. 115BAB of the Income Tax Act 1961, (hereinafter referred to as 'the Act').

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 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.

Per contra, Smt. Shivani Bansal representing the department strongly supported the impugned order and prayed for upholding the same.

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.