Request for issue of directions to condone delay in filing of From 10-IC u/s 115BAA for all years. And to apply Circular no. 19/2023 dt. 23.10.2023 to al years inluding first year i.e. AY 2020-21

[CA DEV KUMAR KOTHARI]

REQUEST LETTER

Before the honorable Finance Minister and members and officers of  CBDT,

Respectfully Madam and sirs,

Request for issue of directions to condone delay in filing of From 10-IC u/s 115BAA for all years. And to apply Circular no. 19/2023  dt. 23.10.2023 to al years inluding first year i.e. AY 2020-21

From Circular No. 19/2023

ii) The assessee company has opted for taxation u/s 115BAA of the Act in item ( e) of "Filing Status" in "Part A-GEN" of the Form of Return of Income ITR-6;  

Therefore, exercise of Option in the ITR-6 form create a substantive right of assessee. A view is possible that unless this option is exercised in ITR-6 form itself. Mere filing of Form 10 IC will not be enough to avail concessional rate of tax. In fact if , this option is not found in ITR-6, concessional rate will not be applied by the software system.

Section 115BAA  and relevant Rules and Form and procedures came into force from assessment year 2020-21.

The first year was AY 2020-21 and second year was 2021-22. Thereafter filing dates for two more years have lapsed.

Admittedly in In the first year there were lot of problems in filing and saving of Form 10 IC. The problems were due to technical snags in the portal of department and due to provisions being new.

However, in second year on wards there were not many problems, as per information and knowledge of author and some of his professional friends and also web search of articles, discussion forums, questions and answers links in some websites. In fact problems were in the first year and many companies could not file Form 10 IC because  time was extended for first year for short period up to 30.06.22 to file the form when the ROI was filed timely and in the ITR option to opt the section was marked.

For second year CBDT has allowed time to file Form 10 IC till 31.01.2024. This is available if ITR was filed within time allowed u.s. 139.1 and option was exercised  in the ITR form at relevant place.

This means that continuing problems have been recognized by  the CBDT. 

However, even for first year , in spite of a short extension allowed did not cover problems period and many assessee  could not file the Form No. 10-IC within extended period or Form was filed but could not be saved on the portal and therefore, intimations are issued charging normal rate of tax without benefit of concessional / special rates and filing of appeal and other proceedings have taken place and  are in progress in many cases.

For the second year there was no extension to file Form No. 10-IC. However, in  second circular the language used is    “ Representations have been received by CBDT stating that Form No. 10-IC could not be filed for A.Y. 2021-22 within the due date or extended due date..”

There was extension to file Form No. 10-IC only for first year  i.e. AY 2020-21 and not for AY 2021-22. This also indicate that filing of form 10 IC for AY 2020-21 is also considered in the second circular.

As per language used in section and two Circulars read with each other, intention of relaxation seems for all years.

Therefore , extension  up to 31.01.24 should be considered for years from AY 2020_21 to AY 2023-24. A Clarification from CBDT is desired.

It can also  be said that the circular dt. 23.10.23 is wrongly worded. Because so far filing of Form 10 IC is concerned, it is required to be filed in year from which option is exercised. Thereafter, option is available without further filing of Form 10 IC for subsequent year.

Lot of litigation is going on as can be seen from some of reported judgments. Courts have recently allowed / directed to allow filing of the form and condonation of delay etc. for first assessment year (2020-21) also.

Madam / sirs,

It is time to think of avoiding un-necessary filing of forms.Rather more information can be asked in ITR itself to cover what is required  in the form. This will reduce litigation and make life easy for all concerned. Will also reduce wastage of time of honorable  Courts, CBDT, Tribunals and Commissioners.

We can also think to go back to old provisions in which the Assessing Officer was allowed to condone delays. Why to waste time of CBDT and Courts in indulging into work that can best be done by grass root officer  i.e.  the Assessing Officer of any asessee. With suitable guidelines proper check and balances can be applied.

I hope for kind consideration in interest of all including revenue, although it will go against interest of professional including me. But I consider public interest  more important then personal interest.

Yours sincerely

CA  Dev Kumar Kothari

Compilation of headnotes from some recent and releant  judgments:

KGY GLASS INDUSTRIES (P) LTD. VERSUS ASSTT. DIRECTOR OF INCOME TAX, CPC, BENGALURU - 2023 (5) TMI 734 - ITAT SURAT

A.C. SURGIPHARMA PRIVATE LIMITED VERSUS DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 1 (1) & ANR. - 2023 (12) TMI 462 - DELHI HIGH COURT

JASPER ASSOCIATES PRIVATE LIMITED VERSUS CENTRALIZED PROCESSING CENTRE, INCOME TAX DEPARTMENT & ANR. - 2023 (10) TMI 331 - DELHI HIGH COURT

RAJKAMAL HEALDS AND REEDS PVT. LTD. VERSUS ASSISTANT DIRECTOR OF INCOME TAX - 2022 (3) TMI 531 - GUJARAT HIGH COURT

BHOLANATH PRECISION ENGINEERING PVT. LTD. VERSUS COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, DELHI - 2022 (11) TMI 1202 - ITAT MUMBAI

SUMINTER INDIA ORGANICS PVT. LTD. VERSUS DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 2 (1) (1) , MUMBAI - 2022 (7) TMI 1219 - ITAT MUMBAI

My one  article is  also reproduced below for detaild discussion

S.115BAA and Form 10- IC – relaxation to file Form 10-IC recent circular must apply to all years and not only AY 2021-22 in fact it can be said that the filing of Form 10 IC is superficial because ITR form itself provide for exercise of option and that option creates a substantive right.