2026 (4) TMI 815

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.....10.2023 plus. The above said return was remained invalid return as per section 139(9) of the Income Tax Act, 1961 (in short 'Act'), due to defective or incomplete. Accordingly a letter was issued to the assessee and in response assessee had filed its return u/s 139(5) of the Act on 18.12.2023 wherein it had opted for Section 115BAB mentioned as 'Yes'. The return of income was processed u/s 143(1) on 28.10.2024 accepting the total income. However, CPC Bengaluru had denied the option for taxation u/s 115BAB of the Act. Subsequently, assessee filed rectification application. However, the same was rejected by the CPC Bengaluru u/s 154 of the Act. 3. Aggrieved with the above order assessee filed an appeal before Ld. CIT(A), ADDL/JCIT....

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....filed with this submission. 3. Copy of Order passed u/s 154 dated 04/03/2025 is attached at Page No. 108 to 115 of the Paper Booklet filed with this submission. Copy of the Intimation passed u/s 154 is attached at Page No.108 to 115 of the Paper Booklet filed with this submission. Kindly refer at Page No.109 wherein while the option u/s 115BAB was selected as "Yes" by the Appellant but in response thereto the Department has specified "NO". This specified "No" by the Department is incorrect. 4. Now, we draw the attention of your Honor to the extract of the ITR filed for A.Y. 2022-23 along with extract of the Intimation Order passed by the Centralized Processing Center u/s 143(1) wherein the option....

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....data, it was observed that assessee did not file any valid return of income within the due date prescribed u/s 139(1) of the Act. Further observed that although a return was filed on 16.10.2023, it was subsequently treated as invalid return and the valid return was filed only on 18.12.2023. He observed that in accordance with the provisions of Section 115BAB of the Act, the option to avoid concessional tax rate is permissible only if the filed return of income is furnished within the due date specified u/s 139 of the Act. Since the valid return in the present case was filed after the due date it constitutes a belated return under the Act. Therefore, he sustained the findings of the CPC in this regard, and accordingly dismissed the appeal fi....

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....pholding such action, the Ld. CIT(A) has rendered the impugned order without jurisdiction, beyond the mandate of the Act, and bad in law. 5. That the Learned CIT(A) has erred in law and on facts in passing a nonspeaking order without properly considering or dealing with the detailed submissions and evidences filed by the assessee. The impugned order is therefore vitiated being contrary to the settled principles of natural justice and bad in law. 6. The appellant craves leave to add or alter one or more ground (s) during the course of hearing of appeal. 6. At the time of hearing, Ld. AR of the assessee submitted that assessee has filed valid return of income in the previous Assessment year and also filed From No.10ID on ....

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....................... (7) Nothing contained in this section shall apply unless the option is exercised by the person in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the first of the returns of income for any previous year relevant to the assessment year commencing on or after 1st day of April, 2020 and such option once exercised shall apply to subsequent assessment years: Provided that once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year."................ 9. From the above it is clear that assessee has to file its return of income u/s 139(1) of the Act in the first year of optin....