2025 (9) TMI 448

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....ent Year 2023-24, date of order 16/06/2025. The impugned order emanated from the order of the CPC, Bengaluru (for brevity the "Ld. AO"), passed under section 143(1) of the Act, date of order 22/04/2024. 2. The assessee has taken the following grounds of appeal: - "1. The Learned Commissioner of Income Tax (Appeals) has erred in confirming denial of relief u/s 89A of the Income Tax Act, 1961 of Rs. 4,34,659 by Deputy Director of Income Tax, CPC, Bengaluru in the Intimation u/s 143(1) in respect of income accrued on retirement benefit account maintained in USA 2. The Learned Commissioner of Income Tax (Appeals) failed to appreciate that having exercised the option regarding taxation of income from retirement benefit maint....

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....may be, in the notified country. The assessee filed Form 10EE on 29.06.2022 to exercise the option for AY 2022-23. In his return of income, the assessee, on page 4 of ITR in Schedule 'Salary' has reported Rs. 4,34,659/- as Income from retirement benefit account maintained in a notified country u/s 89A. The assessee claimed relief u/s 89A of Rs. 4,34,659/- in the ITR of AY 2023-24 towards income accrued on retirement benefit account, as detailed hereunder: Sr.No. Name of Account Income (Rs.) 1 Vanguard SEP-IRA account 3,36,518 2 Vanguard TraditionaL IRA 32,339 3 Avenir 401K 26,319 4 Fidelity Roth IRA 39,483   Total 4,34,660 As per the provisions of section 89A of the Act read with....

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....Ld. AO, u/s 143(1) of the Act the assessee has preferred this appeal before the Ld. CIT(A). The Ld.CIT(A) upheld the action of the Ld.AO. Being aggrieved assessee filed an appeal before us. 4. The Ld. AR submitted that Form No. 10EE had already been filed on 30/07/2022 for AY 2022-23. It was further contended that, in terms of Clause (6) of Rule 21AAA of the Rules once the option is exercised for a specified amount in respect of a particular previous year, the said option shall continue to apply to all subsequent previous years. Accordingly, the Ld. AR argued that the filing of Form No. 10EE is not mandatory for the impugned assessment year. In support of this contention, the Ld. AR drew our attention to the provisions of Rule 21AAA of t....

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.... (6) Subject to the provisions of sub-rule (4), the option once exercised for a specified account or accounts in respect of a previous year under sub-rule (1) in Form No. 10- EE shall apply to all subsequent previous years and cannot be subsequently withdrawn for the previous year for which the option was exercised or any previous year subsequent to that previous year." 5. The Ld.DR argued and relied on the order of the revenue authorities. 6. We have heard the rival submissions and perused the documents available on record. The assessee is a resident individual who filed his return of income for the impugned assessment year without furnishing Form No. 10EE. It is an admitted position that the said form had already been filed for....