TaxTMI 
TaxTMI 
2025 (7) TMI 1385
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....hort 'the Act') rejecting the application dated 16.10.2022 filed by the petitioner to condone the delay in filing Form 10-IC along with the return of income by considering the Form 10-IC filed within due date for Assessment Year 2020-2021. 4. Considering the controversy in narrow compass, the matter is heard finally with the consent of the learned Advocates of the parties. 5. The brief facts of the case are that the petitioner is a Private Limited Company incorporated under the provisions of Companies Act, 1956 and filed its return of income under the provisions of Section 139(1) on 4.11.2020 declaring total income of Rs. 1,16,230/- for the Assessment Year 2020-2021. 5.1. The petitioner exercised the option under Section 115BAA of the Act while filing the return of income to pay the reduced rate of tax at 22% excluding the surcharge and education cess. 5.2. It is the case of the petitioner that the requirement of filing of Form 10-IC is on or before filing due date of Return under section 139(1) of the Income Tax Act 1961. However, the Central Board of Direct Tax, vide its circular dated 06/2022 dated 17.03.2022 has condoned the delay in filing the Form 10-IC till 30.06....
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....of income. However, it was due to mistaken belief and human error of Chartered Accountant of the petitioner that the Form 10IC was filed after two and half months. 6.1. It was therefore submitted that respondent No. 1 ought to have considered the Form 10IC and the application filed by the petitioner for Year 2021-2022. 6.2. Learned advocate Mr. Krutarth Desai in support of his submissions referred to and relied upon the decision of this Court in case of V.M. Procorn Private Limited Versus Assistant Director of Income Tax and Another in Special Civil Application No.9707 of 2024 rendered on 23rd August, 2024 wherein, in similar facts, when the assessee in the said case could not opt for an option in the return of income, was permitted to file Form 10IC so as to take the benefit of reduced rate of tax under Section 115BAA of the Act. 6.3. Learned advocate Mr. Krutarth Desai further referred to and relied upon the decision of this Court in case of Gujarat Electric Company Limited versus Commissioner of Income Tax reported in [2002] 255 ITR 396 (Guj) wherein, after taking into consideration the decision of the Madras High Court in case of R. Seshammal vesus Income Tax Officer a....
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....r in Form ITR-6 that the petitioner had adopted the option for taxation under Section 115BAA of the Act which is further fortified from the intimation issued under Section 143 of the Act, computation of income of the petitioner placed on record wherein also, the petitioner has computed the tax payable at the rate of 22% instead of 30% as well as the intimation issued by the CPC under Section 143(1) of the Act accepting the return of income. 9. The relevant provisions of Section 115BAA of the Act reads as under : "115BAA(1): Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, other than those mentioned under section 115BA and section 115BAB, the income-tax payable in respect of the total income of a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall, at the option of such person, be computed at the rate of twenty-two per cent., if the conditions contained in sub-section (2) are satisfied: Provided that where the person fails to satisfy the conditions contained in sub-section (2) in any previous year, the option shall become inval....
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.... company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall, at the option of such person be computed at the rate of twenty-two per cent subject to satisfaction of conditions contained in sub-section (2) of the Section. 1.2 As per subsection (5) of section 115 BAA of the Act read with Rule 2lAE of the Income-tax Rules, 1962 (the Rules), the assessee company is required to submit Form 10-IC electronically on or before the due date of filing of return of income w/s 139(1) of the Act and such option once exercised shall apply to subsequent assessment years. 1.3 Failure to furnish such option in the prescribed form on or before the due date specified u/s 139(1) of the Act results in denial of concessional rate of tax of twenty-two per cent 10) such person. 2. Representations have been received by the Board stating that Form 10-IC could not be filed along with the return of income for AY 2020-21, which was the first rear of fling of this form. It has been requested that the delay in filing of form 10-may he condoned. 3. On consideration of the matter, with a view to avoid genuine hardship to ....
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....supra) would not be applicable in the facts of the case, as in the facts of the present case, the assessee has claimed the exemption under Section 11 read with Section 12A(1)(b) of the Act which required the assessee to file audit report in Form of 10B which has nothing to do with claiming 100% exemption of total income in respect of newly established 100% Export Oriented Undertakings under Section 10B. Section 10B(8) requires the assessee to file an undertaking before the due date of furnishing of return of income under sub-section (1) of Section 139 before the Assessing Officer in writing that the provision of Section 10B may not be made applicable to him, otherwise the provision of this Section shall not apply to him for any of the relevant assessment year. 6. Considering the language of the provision of Section 10B(8) of the Act, the Hon'ble Supreme Court held that it was mandatory on part of the assessee to file declaration before the due date of filing of return under sub-section (1) of Section 139 of the Act, whereas in the facts of the said case the assessee filed such undertaking along with the revised return under sub-section (5) of Section 139 of the Act and in ....
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....tion 10B (5) to verify the correctness of claim of deduction at the time of filing the return. If an assessee claims an exemption under the Act by virtue of Section 10B, then the correctness of claim has already been verified under section 10B(5). Therefore, if the claim is withdrawn post the date of filing of return, the accountant's report under section 10B(5) would become falsified and would stand to be nullified." 15. On perusal of the above observation of the Hon'ble Apex Court, it is also apparent that the Hon'ble Apex Court has considered the significance of filing declaration under Section 10B(8) of the Act considering the provisions of Section 10B(5) of the Act being a check to verify the correctness of the claim of deduction at the time of filing of return so that if an assessee claims an exemption under the Act by virtue of Section 10B of the Act, then the correctness of the claim has already been verified under Sub-section (5) of Section 10B and therefore, if the claim is withdrawn post the date of filing of return, the report of the Accountant filed under Section 10B(5) of the Act would become falsified and would stand to be nullified. However, the provisio....