Assessee wins appeal for late filing Form 10-IE under section 115BAC as filing deadline held directory not mandatory

ITAT Amritsar allowed the appeal where assessee filed Form 10-IE after the due date for claiming benefits under section 115BAC. The tribunal held that filing Form 10-IE before the due date under section 139(1) is directory, not mandatory, following the precedent in Akshay Devendra Birari case. The court noted that technical glitches in the portal prevented timely filing, and since the form was available to the AO during assessment, CPC should have considered it. The tribunal directed CPC to reconsider the form and pass appropriate orders allowing the new tax regime benefits.

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Issues:
1. Whether filing Form 10-IE before the due date of filing of return under section 139(1) to opt for the new tax scheme under section 115BAC is mandatory or directory.
2. If the option under section 115BAC is not allowed, is the Assessing Officer obligated to permit the claim for deduction under Chapter VIA.

Issue 1: Filing of Form 10-IE - Mandatory or Directory:
The appeal concerns the denial of the benefit of lower tax rates under section 115BAC due to the late filing of Form 10-IE. The appellant argued that the filing of Form 10-IE before the assessing officer at the time of assessment should suffice, as it was done in this case. The appellant contended that the form's filing is directory, not mandatory, citing legal precedents. The tribunal agreed, emphasizing that the requirement is directory, not mandatory, based on judgments from various courts and tribunals. The tribunal directed the CPC to consider the Form 10-IE filed by the assessee and make appropriate orders, ultimately allowing the appeal for statistical purposes.

Issue 2: Claim for Deduction under Chapter VIA:
The second issue revolves around whether the Assessing Officer should allow the claim for deduction under Chapter VIA if the option under section 115BAC is not permitted. The appellant argued that even if the benefit of lower tax rates is denied, the assessee should be entitled to avail deductions under Chapter VIA. However, the tribunal's decision primarily focused on the first issue regarding the nature of filing Form 10-IE. As a result, the tribunal's ruling did not delve deeply into this secondary issue.

The tribunal's detailed analysis considered the legal nature of filing Form 10-IE and the precedents set by various courts and tribunals. The decision clarified that the requirement of filing the form is directory, not mandatory, and directed the CPC to consider the form and make appropriate orders.

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