2025 (7) TMI 1732 - AT - Income Tax

Delay in Filing Form 10-IE Under Section 115BAC is Directory, Not Mandatory, Allows Late Submission

Sh. Arun Kumar Sharma Versus Income Tax Officer, Delhi

The ITAT Delhi held that the delay in filing Form 10-IE under section 115BAC is a directory provision, not mandatory, allowing submission even after the ... New tax regime u/s 115BAC - assessee had not submitted the corresponding prescribed Form 10-IE within the due date up to 31st July, 2023 since filed later on 07.08.2023 - HELD THAT:- Tribunal’s recent decision in Harbans Singh [2024 (8) TMI 535 - ITAT AMRITSAR] has already concluded that the delay in filing of above Form 10-IE is only directory provision than a mandatory one which could even be filed before the assessing authority later on during assessment. We adopt the above detailed reasoning mutantis mutandis to accept the assessee’s instant sole substantive grievance in principle and leave it open for the learned Assessing Officer to frame his consequential computation after verifying all the relevant facts. Assessee’s appeal is allowed. The Appellate Tribunal (ITAT Delhi) allowed the assessee's appeal for AY 2023-24 against the CIT(A)'s order under section 143(1) of the Income-tax Act, 1961. The issue was the assessee's claim to opt for the new tax regime under section 115BAC, which was rejected solely because Form 10-IE was filed late (on 07.08.2023 instead of by 31.07.2023). Relying on the tribunal's precedent in Harbans Singh Vs. AO, CPC (2024) 165 taxmann.com 146 (Amritsar), the tribunal held that the delay in filing Form 10-IE is a 'directory provision' and not mandatory, allowing the form to be filed even during assessment proceedings. The tribunal accepted the assessee's grievance 'in principle' and remitted the matter to the Assessing Officer for consequential computation after verifying relevant facts. The appeal was accordingly allowed.