Concessional Tax Regime available where Form No.10IC, though belated, was on record before corrected return processing.

Assessee who filed Form No.10IC belatedly but before filing a rectified return and whose Form No.10IC was on record during processing may be permitted to opt for the concessional tax regime. The note applies the principle that a rectified or revised return substitutes the original return and that procedural non compliance should not defeat substantive benefits where statutory conditions are satisfied and taxpayer intent is clear. On these facts, the Form No.10IC should be verified in processing and, if in order, the concessional regime allowed.

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Issues: Whether an assessee who filed Form No.10IC belatedly but before rectifying a defective return (filed in response to notice under section 139(9)) and whose Form No.10IC was on record at the time of processing, can validly avail the concessional tax regime under section 115BAA of the Income-tax Act, 1961.

Analysis: The Court examined the sequence of events: original return filed without opting for section 115BAA; defect notice under section 139(9); filing of Form No.10IC prior to filing the corrected return; the corrected return accepted during processing under section 143(1); and the minimal, explained delay in filing Form No.10IC. The Court considered Coordinate Bench decisions which hold that a revised or rectified return substitutes the original return and that procedural non-compliance should not defeat substantive benefits where statutory conditions are otherwise satisfied and the taxpayer's intention is clear. The Court distinguished the contrary authority relied upon by the revenue on the facts, noting that in that case the taxpayer had expressly indicated non-option for the concessional regime. The Court found that Form No.10IC was on record during processing and that the assessee's intention to opt for section 115BAA was demonstrated and supported by contemporaneous materials and explanation for the short delay.

Conclusion: The claim for benefit under section 115BAA is admissible on the facts; the impugned order is set aside and the Assessing Officer is directed to verify Form No.10IC and, if in order, allow the concessional tax regime to the assessee. The decision is in favour of the assessee.

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