9911796707
TMI Blog2025 (2) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... 2/M/2024 The Government of India from F.Y. 2020-21 (A.Y. 2021-22) onwards, introduced new tax regime/incentive scheme/provisions, wherein concessional tax rates were introduced with substantial reduction in deduction and exemption. Therefore, the Assessee by filing Form No.10IE on 10.01.2022 for claiming the benefit from F.Y. 2020-21 (A.Y. 2021-22) onwards, opted for the benefit of new tax regime u/s 115BAC of the Act. However, the CPC processed the return filed for the AY 2021-22 by the Assessee under old regime. 4. The Assessee thereafter filed his return for the AY 2022-23 under new tax regime, but the same was disallowed by the authorities below on the ground that according to the mandate of Form No.10IE option of new tax regime once exercised by an Assessee in a previous year, cannot be withdrawn in that previous year. Further, as per the proviso of the scheme, if the option is withdrawn from any subsequent year, then the Assessee would become ineligible for exercising the option for new tax regime in future. On the aforesaid reasons, the authorities below specifically the Ld. Addl./Joint Commissioner vide impugned order dated 05-06-2024 u/s 250 of the Act, did not allow/con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... latedly under the old tax regime, mainly on the reason that portal system of Income Tax Department did not allow for choosing the new tax regime after the extended due date on 31.12.2021. Therefore, in the constrained circumstances and having no option left, the Assessee was constrained to file its return of income for the A.Y. 2021-22 under the old regime. However, it is a fact that said return was subsequently processed and accepted by the Revenue Department. Admittedly it is a fact that as on the date of processing/finalization of the return filed by the Assessee for the A.Y. 2022-23, the option exercised for new tax regime for the AY 2021-22 was in existence and/or has not been withdrawn by the Assessee. Even otherwise, the return filed by the Assessee for the A.Y. 2021-22 was neither rejected nor declared invalid by the CPC and in fact the same was processed and accepted as observed above by us. 7.1 The Tribunal at Amritsar Bench in the case of Harbans Singh vs. AO, CPC, Bangalore in ITA No.25/Asr/2024 decided on 24.07.2024, also dealt with identical issue and held "that requirement of filing Form No.10IE is directory in nature and not mandatory and it is sufficient complianc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue date u/s 139(1) of the Act, the tribunal held the same to be merely directory in nature and opined that the same cannot be so fatal so as to deny exemption u/s 11(2) specially when the said Form - 10/10B was available before the AO when intimation was passed by CPC, u/s 143(1). 10.5 Regarding the issue of technical glitch raised by the assessee, that Form 10- IE could not be uploaded in the portal within the time allowed u/s 139(1), due to technical incompatibility in the portal we refer to a judgment of the Hon'ble Gujrat High court in the matter of section 115BBA of the Act, in the case of PCIT vs KGY Glass Industries P Ltd, ( 2023) 156 taxmann.com18 (Gujrat), where Form 10-1C was required to be filed by the domestic company within time allowed u/s 139(1) of the Act, opting to be taxed as per provisions of section 115BBA, was not practically possible due to technical glitches in the portal, the Hon'ble court held that in absence of any fault on the part of the assessee, the assessee cannot be deprived of benefit under section 115BBA of the Act. 10.6 As such considering all aspects of the matter, and noting the legal conclusions derived at by various courts and tribunals, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for previous year relevant to A.Y. 2021-22 is condoned in cases where the following conditions are satisfied: "i) The return of income for relevant assessment year has been filed on or before the due date specified under section 139(1) of the Act; 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; and iii) Form No. 10IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which this Circular is issued, whichever is later." 7.6 Recently the jurisdictional co-ordinate Bench of the Tribunal in ITA No.3981/M/2024 in the case of M/s. Swingtel Communications Pvt. Ltd. vs. ITO, Ward 4(3)(1), Mumbai dated 06.01.2025 also dealt with the almost identical issue, wherein due to some technical glitches in the ITBA portal, the Assessee was unable to file/upload Form No.10IC for the A.Y. 2022-23 as the portal system did not accept the same for the reason that Form 10IC has already been uploaded for the A.Y. 2022-23 and therefore the Hon'ble Bench allowed the claim of the Assessee by taking refuge of the CBDT circular (supra) and observing and holdin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benevolent provisions of the law in such a way that real effects of the same would come. 7.9 Coming to the instant case, we observe that till the date of processing the return filed by the Assessee for the A.Y. 2022-23, Form No.10IE for exercising the option for availing the benefits of new tax regime filed on 10-01-2022 for the AY 2021-22 was neither withdrawn nor rejected or made invalid but the same was still available or effective before the AO during the assessment proceedings or passing the Assessment order and therefore in our considered view, the return filed by the Assessee should have been considered, under the new tax regime/provisions. Thus, the Assessee is entitled for the benefit of new tax regime and consequently the addition is deleted. Resultantly, the appeal i.e. ITA no. 3482/M/2024 filed by the Assessee is allowed. 7.10 We truly appreciate and endorse the candid approach and submissions of the Ld. D.R. Shri Himanshu Joshi, who provided able assistance to the Court for coming to the right conclusion of these cases. 8. In the result, in view of our judgment in ITA no. 3482/M/2024, both the appeals filed by the Assessee are allowed in the same terms. Order prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
