Petitioner permitted to seek CBDT approval for Form 10-IC electronically, with 4-week deadline.

The Court allowed the petitioner to approach the CBDT to file Form 10-IC electronically, granting four weeks for the application. The CBDT would then consider the request, emphasizing procedural compliance in tax matters and providing a pathway for rectification to potentially benefit from the lower tax rate under Section 115BAA of the Income Tax Act, 1961.

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Issues involved:
The writ petition involves challenging an assessment order for Assessment Year (AY) 2021-22, specifically regarding the imposition of a higher tax rate due to a procedural lapse in filing Form 10-IC as required under Section 115BAA of the Income Tax Act, 1961.

Details of the Judgment:

Issue 1: Challenge to Assessment Order
The petitioner sought to challenge the assessment order dated 13.11.2022, which imposed a higher tax rate due to non-compliance with the conditions stipulated under Section 115BAA of the Income Tax Act, 1961. The petitioner argued that failure to file Form 10-IC electronically led to the imposition of the higher tax rate of 30% instead of the lower rate of 22% as provided under Section 115BAA.

Issue 2: Relief Sought by Petitioner
The petitioner sought the Court's indulgence to complete the requirements prescribed under Section 115BAA(5) and Rule 21AE(2) to avail the benefit of the lower tax rate. The petitioner relied on a judgment of the Gujarat High Court, emphasizing the need to file an appropriate application to permit electronic filing of Form 10-IC after condoning any delay.

Court's Decision and Directions
The Court allowed the petitioner to approach the Central Board of Direct Taxes (CBDT) for permission to file Form 10-IC electronically, pursuant to the powers conferred under section 119(2)(b) of the Act. The petitioner was granted four weeks to make the necessary application to the CBDT, which would then consider the request and pass an appropriate order. The parties were instructed to act based on the digitally signed copy of the order.

This judgment highlights the importance of procedural compliance in tax matters and provides a pathway for the petitioner to rectify the error and potentially benefit from the lower tax rate as intended under Section 115BAA of the Income Tax Act, 1961.

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