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TMI Blog2024 (4) TMI 1026X X X X Extracts X X X X X X X X Extracts X X X X ..... for the relevant Assessment year [A.Y.] 2020-21 has been dismissed resulting in affirmation of assessment order dated 24.12.2021 passed u/s 143(3) r/w section 144B of the Act. 2. The brief facts leading to this appeal state that the appellant company filed its return of income electronically on 05.02.2021 for A.Y. 2020-21 declaring its total income of Rs. 43,62,97,650/-. The appellant's case was selected for scrutiny under CASS. The appellant assessee participated in the assessment proceedings after receipt of notice. The AO did not find any discrepancy in the aforesaid total income shown by the assessee in ROI. However, the AO found that the assessee was not entitled to the benefit of section 115BAA of the Act. Aggrieved by the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Rules, 1962 [hereinafter called as the "Rule"] due to technical glitches. The same could be uploaded on 02.05.2021, which was permissible to be uploaded till 31.05.2021 in accordance with CBDT's Circular No. 06/2022 dated 17.03.2022. The Ld. CIT(A) has failed to appreciate the facts & erred in applying correct law. Appellant assessee has prayed to set aside the impugned order to this extent and to direct AO to compute appellant's tax liability on the basis of its option exercised in accordance with section 115BAA of the Act. 7. The Ld. DR has argued that the appellant company has not exercised its option for taxation u/s 115BAA of the Act at the time of submitting ROI electronically in accordance with condition 3(ii) of the above CBDT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 10AA or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) or sub-section (2AB) of section 35 or section 35AD or section 35CCC or section 35CCD or under any provisions of "[Chapter VI-A other than the provisions of section 80JJAA or section 80M); (ii) without set off of any loss carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); (iii) without set off of any loss or allowance for unabsorbed depreciation deemed so under section 72A, if such loss or depreciation is attribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10-IC shall be furnished electronically either under digital signature or electronic verification code. (3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall- (i) specify the procedure for filing of Form No. 10-IC; (ii) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and (iii) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished." 10. In view of rule 21AE, the appellant assessee domestic company was to exercise its option for the benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. (iii), form 10-IC was electronically uploaded by the assessee domestic company on 02.05.2021 i.e. before cut off date mentioned in CBDT circular i.e. 30.06.2022. 12. As far as the compliance of condition No. (ii) of CBDT circular by the appellant domestic company is concerned, the option by the appellant could be exercised only by uploading from 10-IC prescribed under Rule 21AE of the rules on 02.05.2021, the delay in uploading this form 10-IC was already condoned by the CBDT. It is well established precedent that a circular of CBDT, no doubt, has the force of law, can even supplant the law in cases where it is beneficial to the assessee and can mitigate or relax the rigors of the law. The powers of the CBDT in issuing circular for g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant law on the facts of the present cast. We therefore set aside the order dated 12.09.2023 passed by CIT(A) along with assessment order dated 24.12.2021 to the aforestated extent. The aforesaid point related to the grounds of appeal, is accordingly determined positively in favour of the appellant assessee. AO is thus directed to compute the tax liability of the appellant assessee, a domestic company in accordance with the mandate of Section 115BAA(1) of the Act. The matter is restored to the file of AO for the statistical purposes. The appeal is, thus, liable to be allowed in above terms.
14. In the result, appeal filed by the assessee is allowed.
Order Pronounced in Open Court on 24.04.2024 X X X X Extracts X X X X X X X X Extracts X X X X
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