Late Form 10-IC filing treated as procedural lapse; concessional tax rate under section 115BAA remained available.

Filing Form 10-IC after the due date under section 139(1) was treated as a procedural lapse, not a substantive disqualification, where the assessee had disclosed the option for taxation under section 115BAA in the return and the form was available on the CPC portal when the return was processed under section 143(1). As no dispute was raised on any other eligibility condition, the processing under the old regime was regarded as a technical error. The concessional tax rate under section 115BAA was therefore held to be available, and denial of that benefit was not sustained.

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Issues: Whether the assessee was entitled to the concessional tax rate under section 115BAA of the Income-tax Act, 1961 despite filing Form 10-IC after the due date prescribed under section 139(1) of the Income-tax Act, 1961.

Analysis: The assessee had filed Form 10-IC and disclosed the option for taxation under section 115BAA in the return of income. The form was available on the CPC portal when the return was processed under section 143(1), and no dispute was raised on any other eligibility condition. The delay in filing the form was treated as a procedural lapse, and the processing of the return under the old regime was viewed as a technical error.

Conclusion: The assessee was entitled to the benefit of section 115BAA, and the denial of the concessional rate was not sustained.

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