New tax regime option and late Form 10-IC filing: election available before AO preserves benefit; delay may be condoned.

Filing Form 10-IC/10IE to opt into the new tax regime is directory, not mandatory; compliance is satisfied if the election is filed or available before the assessing officer during assessment, and the taxpayer may still obtain the regime's benefits if the form remains effective at assessment. Where the election was filed electronically within the time window permitted by the relevant CBDT circular or its prescribed extension, delay in original filing for the earlier assessment year is liable to be condoned; accordingly the assessing authority's allowance of the claim was sustained and the revenue's challenge was rejected.

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Issues: Whether the assessee is entitled to the benefit of the new tax regime under section 115BAA for the assessment year 2022-23 on the basis of Form No.10IC filed on 19.07.2022 (filed for AY 2021-22), despite that form being filed after the due date for AY 2021-22.

Analysis: The matter revolves around (i) availability and effect of Form No.10IC/10IE filed on 19.07.2022, (ii) whether the requirement to file Form No.10IC/10IE before the due date under section 139(1) is mandatory or directory, and (iii) applicability of condonation or relief measures including CBDT Circular No.19/2023 and section 119(2)(b). Relevant authorities and precedents treat the filing of prescribed forms as directory where the form is available before the assessing officer at the time of assessment; technical portal failures and administrative exigencies have been recognised as grounds for relief. The CBDT circular provides for condonation windows and specifies conditions for accepting late electronic filing of Form No.10IC. On the facts, Form No.10IC filed on 19.07.2022 was neither withdrawn nor rejected and was available before the assessing officer when the return for AY 2022-23 was processed. Coordinate tribunals and courts have held that filing requirements of similar forms are directory and that assessee should not be deprived of the benefit where conditions are otherwise satisfied and filing is effectively available at assessment.

Conclusion: The assessee is entitled to the benefit of the new tax regime under section 115BAA for AY 2022-23 based on the Form No.10IC filed on 19.07.2022; the decision of the Commissioner (Appeals) allowing the claim is affirmed and the Revenue's appeal is dismissed.

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