DELAY IN FILLING OF FORM 10IE

[PANKAJ MASKARA]

FOR AY 2021-22, I have filed Form 10IE after due date of ROI, so sec 115BAC was not allowed in intimation order. But in AY 2022-23, 115BAC was not given. Kindly suggest case laws & possible course of action.

[YAGAY andSUN]

In the context of your inquiry regarding the non-allowance of Section 115BAC benefits for Assessment Year (AY) 2022-23, despite the belated filing of Form 10IE for AY 2021-22, several legal precedents and procedural avenues merit consideration.

Firstly, it is pertinent to note that the requirement to file Form 10IE is not absolute but is considered directory in nature. The Income Tax Appellate Tribunal (ITAT) Pune, in a recent judgment, held that the belated submission of Form 10IE does not preclude an assessee from availing the benefits under the new tax regime, provided the option is exercised before the due date of filing the return for the relevant assessment year.

Furthermore, the ITAT Jaipur has emphasized that the belated filing of Form 10IE for a preceding assessment year should not impede the assessee's ability to opt for the new tax regime in subsequent years. The Tribunal suggested that the Central Board of Direct Taxes (CBDT) consider modifying the system to accommodate such situations, thereby ensuring that genuine taxpayers are not disadvantaged due to procedural delays.

In light of these precedents, the following course of action is advisable:

1. File a Rectification Application: Submit an application under Section 154 of the Income Tax Act to the Assessing Officer, requesting rectification of the intimation order for AY 2022-23. This application should highlight the legal precedents that support the view that the belated filing of Form 10IE does not preclude the benefit under Section 115BAC.
2. Seek Condonation of Delay: If the rectification application is not favorably considered, file an application under Section 119(2)(b) of the Income Tax Act before the CBDT, seeking condonation of the delay in filing Form 10IE. The application should substantiate the reasons for the delay and reference relevant case laws that support the condonation of such delays.
3. Prepare for Further Legal Recourse: In the event that the CBDT rejects the condonation application, consider filing a writ petition before the jurisdictional High Court. The Court may exercise its discretion to condone the delay, especially if the delay is not substantial and the assessee has otherwise complied with the substantive requirements of the law.

It is imperative to approach this matter promptly and with due diligence, ensuring that all procedural requirements are meticulously followed and supported by relevant legal precedents.

AI Summary

Belated Form 10IE filing should not bar opting for the new tax regime; pursue rectification or condonation. Belated filing of Form 10IE for a prior year is directory and should not bar an assessee from opting for the new tax regime in a subsequent year; remedial steps include filing a rectification application to correct the intimation, seeking condonation of the delay from the central authority, and, if those remedies are exhausted, pursuing judicial review by writ.