Concessional tax rate for delayed Form 10-IC filing upheld after condonation and portal-related technical difficulty.

Delayed filing of Form 10-IC did not justify denial of the concessional tax rate where the delay had been condoned under section 119(2)(b), the filing problem arose from technical difficulty on the income-tax portal, and CBDT Circular No. 6/2022 had extended the filing time limit. In these circumstances, the denial of the reduced rate under section 115BBA was treated as unsustainable, and the assessee was entitled to taxation at the concessional rate instead of the normal rate.

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Issues: Whether the assessee was entitled to the reduced rate of tax under section 115BBA of the Income-tax Act, 1961 despite delayed filing of Form 10-IC, where the delay had been condoned and the portal access problem persisted.

Analysis: The delay in filing Form 10-IC had been condoned by the Principal Commissioner under section 119(2)(b) of the Income-tax Act, 1961. The delay arose from technical difficulty on the income-tax portal, and the CBDT Circular No. 6/2022 dated 17.03.2022 had extended the time limit for filing the form. In these circumstances, the denial of the concessional tax rate was held to be unsustainable, and the technical issue was treated as a matter to be addressed by the revenue authorities.

Conclusion: The assessee was held entitled to taxation at 22% in place of 30%, and the denial of the reduced rate was set aside.

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