Belated Form 10-IC filing for concessional tax regime allowed where substantial compliance and genuine hardship were shown.

Where an assessee had already opted for the concessional tax regime under Section 115BAA in the return and had substantially complied with its conditions, refusal to condone delay in filing Form 10-IC under Section 119(2)(b) was unsustainable. The delay was attributed to the pandemic period and remote functioning of the tax department, and denial of procedural relaxation would have defeated the substantive benefit already claimed. The HC held that the power under Section 119(2)(b) must be used to avoid genuine hardship, set aside the rejection, and directed the authorities to permit filing of Form 10-IC and consider the claim under the concessional regime on merits.

---

---

Issues: Whether the rejection of the application seeking condonation of delay in filing Form 10-IC under Section 119(2)(b) of the Income-tax Act, 1961, for availing the concessional tax regime under Section 115BAA, was justified.

Analysis: The petitioner had already exercised the option for taxation under Section 115BAA in the return and had foregone the deductions contemplated by that provision. The delay in filing Form 10-IC was attributed to the pandemic period and the consequent remote functioning of the tax department, and the record disclosed substantial compliance with the conditions of the concessional regime. The governing power under Section 119(2)(b) is to be exercised to avoid genuine hardship, and the failure to permit filing of Form 10-IC would defeat the benefit already opted for in substance.

Conclusion: The rejection of condonation was unsustainable and the petitioner was entitled to be permitted to upload Form 10-IC, with the claim under Section 115BAA to be considered on merits.

Final Conclusion: The impugned order was set aside and the authorities were directed to enable filing of Form 10-IC and then decide the petitioner's claim under the concessional tax regime in accordance with law.

Ratio Decidendi: Where an assessee has substantially complied with the conditions for a concessional tax regime and denial of procedural relaxation would cause genuine hardship, the power under Section 119(2)(b) must be exercised to permit belated compliance.

---