2025 (6) TMI 626 - AT - Income Tax

Denial of concessional rate u/s. 115BAC - appellant had failed to file return of income as well as the requisite Form 10IE within the prescribed time limit - assessee submits that filing of the prescribed report is only directive and the same was filed along with the return of income - HELD THAT - 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 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 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. Appeal filed by the assessee stands allowed.

Summary

The Appellate Tribunal (ITAT Cochin) allowed the assessee's appeal against the CIT(A)'s order denying the benefit of the New Tax Regime under section 115BAC of the Income Tax Act, 1961 for AY 2021-22. The key issue was the delayed filing of Form No.10IE, a prerequisite for claiming the concessional tax rates under the New Tax Regime.The Assessing Officer and CIT(A) had denied the benefit as the Form 10IE was not filed before the return of income. The Tribunal noted that the appellant had filed Form 10IE on 10.01.2024, after the due date, but the form was available with the CPC at the time of processing under section 143(1). Importantly, the Tribunal held that "it is not a mandatory requirement for filing of Form No.10IE but directory in nature." Therefore, the CPC was directed to amend the intimation to allow the benefit of the New Tax Regime, considering the Form 10IE already in its possession.The Tribunal relied on precedents including Akshay Devendra Birari v. DCIT and others, emphasizing the non-mandatory nature of Form 10IE filing timing. The appeal was allowed accordingly.