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Facts
The assessee intended to opt for the new tax regime under Section 115BAC but failed to select the option in the ITR form. The assessee filed a revised return and Form 10IE after the due date. The CPC denied the benefit of the concessional tax rate due to the late filing of Form 10IE.
Held
The Tribunal held that the filing of Form 10IE is directory and not mandatory, and a revised return filed before the due date substitutes the original return. The Tribunal referred to previous decisions of co-ordinate benches supporting this view.
Key Issues
Whether the benefit of concessional tax rate under Section 115BAC can be denied solely due to the late filing of Form 10IE after the due date.
Sections Cited
115BAC, 139(1)
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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI RAJ KUMAR CHAUHAN, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. CIT(A)/Addl./JCIT(A)-3, Delhi, dated 08/08/2024, pertaining to AY 2023-24.
The grievance of the assessee reads as under:- “1. The CPC Bangalore has. Erred in denying the benefit of concessional tax rate U/S 115BAC of the income tax act due to non-filing of Form 10IE electronically on or before 30th September, 2023. 2. Kindly stay the demand pending decision in appeal. 3. The assessee craves leave to add or alter any of the ground of appeal on or before the date of hearings.”
3. The sum and substance of the grievance of the assessee is that the revenue authorities erred in denying the benefit of lower tax as per 2 Section 115BAC of the Act only for the reason that Form 10IE was not filed before the due date of filing of return u/s 139(1) of the Act.
4. Briefly stated, the facts of the case are that the assessee filed its return of income on 23/10/2023. The assessee wanted to opt for new tax regime but could not select the option for new regime while filing the ITR Form. The assessee had not claimed any deduction under Chapter VIA, even though he has himself invested in PPF, paid medical insurance premium and also paid housing loan and housing interest. The return was processed by the CPC Bengaluru u/s 143(1) of the Act on 29/12/2023 and the returned income was accepted without granting any deduction under Chapter VIA. The assessee revised his return of income on 30/12/2023 and filed Form 10IE alongwith. Once again, the return was processed u/s 143(1) of the Act by CPC, Bengaluru, but the benefit of lower rate of tax was denied. 5. The assessee filed an appeal before the ld. CIT(A) but did not find any favour from him only because the assessee could not submit Form 10IE. 6. Before us, the ld. Counsel for the assessee stated that, furnishing of Form 10IE is directory in nature and not mandatory and it is a sufficient compliance, if it is filed before the AO before the date of assessment. Referring to Rule 21AG of the Income Tax Rules, 1962, the ld. Counsel for the assessee pointed out that the said Rule does not specifically provide for disallowing the claim of lower rate of tax for late filing of Form 10IE. Per contra, the ld. D/R strongly supported the findings of the ld. AO.
I.T.A. No. 5098/Mum/2024 3