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TMI Blog2025 (1) TMI 1402X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the action of not calculating Total Income as per provisions of section 115BAA. (ii) On the facts and circumstances of the case and in law, the ld CIT(A) erred in not applying the provisions of section 115BAA while calculating Total Income & Tax liability. Total Income & tax thereon be calculated applying provisions of section 115BAA. (iii) On the facts and circumstances of the case and in law the ld CIT(A) erred in confirming charging of interest u/s 234A, 234B and 234C and raising a demand of Rs. 12.02,73,660. The demand and interest u/s 234B and 234C be cancelled. 3. The main issue involved in the above appeal pertains to denial of option u/s 115BAA on the ground that Form 10IC was not submitted before the prescribed time i.e due date u/s 139(1).It is stated that the assessee filed its return of income for AY 2021-22 on 11.03.2022,seeking option u/s 115BAA and paid tax at the prevalent tax rate 22 percent plus applicable surcharge and cess as per provisions of the relevant section. Tax audit in Form 3CA was filed on 11.02.2022 wherein assessee specified section 115BAA in clause 8(a) of Form 3CA. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intended to make an application u/s 119(2)(b) to PCIT / CCIT seeking permission for condonation of delay in filing of Form No. 10-IC.However, there was no option reflecting on IT Portal. 5.2 The ld.AR has also relied on certain decisions of co-ordinate benches and High Court in support of the contention that filing of form is not mandatory. In the case of KGY Glass Industries (P) Ltd, the Gujarat High Court made observation that the assessee could not upload Form No.10-1C on account of technical problem on ITBA portal at the relevant time. Also this was the first year, in which, the assessee was to avail benefit u/s 115BAA.Therefore, it could not be deprived of benefit particularly when this being the first year for availing such benefits. The Ahmedabad ITAT in case of Aprameya Engineering Limited allowed assessee's appeal on the basis judicial precedents and facts that the delay in filing Form 10lC may be a procedural requirement, but does not invalidate the assessee's substantive right to claim the benefit of Section 115BAA. It is also argued that as per section 143(1) the impugned adjustment of different tax rate not does not fall within the scope of adjustment stated i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile deciding the Doctrine of Substantial Compliance held as under: "33. A fiscal statute generally seeks to preserve the need to comply strictly with regulatory requirements that are important, especially when a party seeks the benefits of an exemption clause that are important. Substantial compliance with an enactment is insisted, where mandatory and directory requirements are lumped together, for in such a case, if mandatory requirements are complied with, it will be proper to say that the enactment has been substantially complied with notwithstanding the non-compliance of directory requirements. In cases where substantial compliance has been found, there has been actual compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly with the conditions or requirements that are important to invoke a tax or duty exemption and to forgive non-compliance for either unimportant and tangential requirements or requirements that are so confusingly or incorrectly written that an earnest effort at compliance should be accepted." 6.2 The authorities below failed to appreciate that if the failure to consider th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the time prescribed u/s. 139(1) of the Act. 6. The provisions of Section 143(1) of the Act are clear in their requirement that prior to passing an intimation order, the Assessing Officer must provide the taxpayer with a reasonable opportunity to present their case and address any concerns or discrepancies. It is incumbent upon the tax authorities to afford taxpayers a fair hearing and a chance to clarify or contest any issues related to their tax assessment. In this specific case, it was not provided with any such opportunity to be heard. As observed that the assessee has not filed Form No. 10IC for claiming concessional rate of tax but on the other hand CPC, Bengaluru also has not followed the procedure prescribed by the law. It is reasonably assumed that the if the CPC, Bengaluru would have followed the procedure, i.e. giving the assessee a reasonable opportunity of hearing, the assessee would have filed the Form No. 10IC before the CPC, Bengaluru and this technical requirement would have been completed. 7. In view of this, the Jurisdictional AO is directed to give a fresh opportunity to the assessee ignoring this adjustment made by the CPC, Bengaluru and the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT(A) has co-terminus power as of Assessing Officer, therefore, the ld. CIT(A) was required to consider the report in Form 10-IC. In view of the above factual and legal discussion, the ground of appeal raised by the assessee is restored back to the file of assessing officer to consider the report in Form-10IC and allow relief to the assessee, if the assessee fulfil all other requisite condition as per law. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose." 6.5 The co-ordinate bench of ITAT, Ahmedabad has taken also considered the issue in hand as below in the case of Mahalaxmi Asphalt Private Limited vs Ito, Ward-2(1)(1), Ahmedabad dated 30 September, 2024 in ITA No.1291/Ahm/2024: "7. We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that. The assessee vide written submission made he assessee has filed the return of income on 29.12.2020 thereby applying the tax rate as per Section 115BAA of the Act. The only fault of the assessee was that the assessee has not filed Form 10IC alongwith the said return. It is not disputed that for claiming tax rate under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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