TaxTMI 
TaxTMI 
2026 (5) TMI 1266
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....nt No.475187371301023 dated 30.10.2023), wherein the assessee has claimed to have opted to be governed by new tax-regime u/s 115BAA in the 'Filing Status' in 'Part-A General' Column(Page 2/PB). It is stated in the said column that Form No. 10IC is filed along-with vide acknowledgment number 123456789999994 dated 30/10/2023. It appears that this acknowledgment number is a dummy number, as it is an admitted poisition that Form No. 10IC for impugned assessment year was not filed along with return of income, but was belatedly filed by the assessee on 07.02.2024 vide eacknowledgment number 934203570070224. The aforesaid original return of income was filed within due date as prescribed u/s 139(1). The assessee has claimed that the declaration in Form No. 10IC was filed belatedly due to inadvertent and bonafide omission on the part of the Accountant of the assessee. The rate of taxation applicable under new regime of taxation u/s 115BAA is 22%, while the CPC raised demand by applying rate of tax applicable under the old regime @30% by treating that the assessee has not opted for new regime of taxation u/s 115BAA. The Ld. CIT(A) also upheld the application of rate of taxation @ 30% as is a....
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....sessee submitted that the Tribunal has taken consistent stand, wherein it was held that filing of Form No. 10IC is directory in nature and not mandatory. 3.2 The Ld. Sr.DR on the other hand submitted that there is delay on the part of the assessee in filing Form No.10IC, and it is mandatory on the part of the assessee to file Form No.10IC before filing return of income u/s 139(1) which was not done and rather in the instant case form no. 10IC was filed by the assessee belatedly on 07.02.2024. 4. We have heard rival parties and considered the material on record including cited case laws. We have observed that the assessee has claimed to have opted to be governed by new tax regime under section 115BAA of the Act, wherein applicable tax rate @ 22% as against normal rate of tax@30%. The assessee has filed its return of income in time on 30th October, 2023, u/s 139(1) of the Act. The assessee has claimed to have opted to be governed by new tax regime u/s 115BAA in the column 'Filing Status' in 'Part-A General'. But, admittedly, however, the assessee filed Form 10IC belatedly on 7th Feb.2024 for impugned assessment year. We have observed that the Tribunal has taken a view in the ci....
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....in the case of Commissioner of Customs (Import), Mumbai v. Dilip Kumar & Company [2018] 95 taxmann.com 327/69 GST 239 (SC) (2018) 9 SCC 1 (FB, SC), while deciding the Doctrine of Substantial Compliance held as under: "33. A fiscal statute generally seeks to preserve the need to comply strictly with regulatory requirements that are important, especially when a party seeks the benefits of an exemption clause that are important. Substantial compliance with an enactment is insisted, where mandatory and directory requirements are lumped together, for in such a case, if mandatory requirements are complied with, it will be proper to say that the enactment has been substantially complied with notwithstanding the noncompliance of directory requirements. In cases where substantial compliance has been found, there has been acmal compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly with the conditions or requirements that are important to invoke a tax or duty exemption and to forgive non-compliance for either unimportant and tangential requirements or requirements that are so confusingly or incorr....
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....beneficial piece of legislation. 21. After perusing the contentions of the learned counsel for the parties, records and case laws cited, in the opinion of the Court, the genuine hardship shall be seen by the concerned respondent authority as the petitioner is not getting benefit of concessional rate of tax under the Act, in respect of delay, therefore, the impugned order dated 30.01.2024 passed by the Principal Commissioner of Income Tax, Ghaziabad is quashed and the respondent authority is directed to condone the delay in filing Form 10-IC and accept the said Form 10-IC. The respondent concerned is further directed to provide consequential relief to the petitioner by recomputing its tax liability on the submission of its ITR by taking into account Form 10-IC 22. Accordingly, the writ petition is allowed." 11. The Co-ordinate Bench of Delhi Tribunal in the case of Bansal Corelam (P). Ltd (supra) Hon'ble ITAT Delhi (refer Page No. 1-6 of CL.C) held as below: 2. "The only issue to be decided in this appeal is as to whether the Id NFAC was justified in confirming the denial of claim made by the assessee to opt new tax regime under section 115BAA....
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....e Circulars indicate a degree of administrative flexibility and a recognition that procedural lapses should not necessarily lead to the denial of substantive benefits. Moreover, denying the benefit based solely on this lapse would be against the principles of equity and justice, especially when there is no dispute regarding the assessee's eligibility for the lower tax rate." 4. Respectfully following the same, we direct the learned AO to recompute the income under the new tax regime in terms of section 115BAA of the Act in the facts and circumstances of the instant case Accordingly, the grounds raised by the assessee are allowed." 12. The Co-ordinate Bench of Ahmedabad Tribunal in the case of Aprameya Engineering Ltd (suprn) (refer Page No. 7-17 of CLC) wherein it was held that considering the principle of beneficial inter(pupa) (refer page dural requirements should not override substantive benefits. Hence, delay in filing of Form 10-1C, being procedural requirement, should not invalidate the assessee's right to claim the benefit of Section 115BAA of indicate a degree of administrative flexibility and recognition that procedural lapses should not lead to d....
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....t in order to claim the benefit of the new tax regime, filing of Form 101E under Rule 21AG of the Rules, is not a mandatory requirement but it is rather directory in nature. The Hon'ble Tribunal directed the Revenue to allow the benefit of the new tax regime by taking into consideration the Form 101E as the same was available with the Revenue at the time of processing the return of income. The relevant paragraph of the said ruling is reproduced herewith for your Honour's ready reference: 7. "We heard the Id. Sr. DR and perused the relevant material on record. The solitary issue that arises for our consideration in the present appeal is whether the CPC was justified in denying the benefit of New Tax Regime. Admittedly, the appellant had failed to submit the prescribed Form No.101E in order to claim the benefit of New Tax Regime before the due date for filing the return of income. However, the appellant had filed the said form on 10.01.2024 on which date the CPC had processed the return of income u/s, 143(1)(a) denying the benefit of New Tax Regime. In any event, it is not a mandatory requirement for filing of Form No.101E but directory in nature. The Form No.101E wa....
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....y, we direct the AO to compute the tax at the concessional rate as per Section 115BAA of the Act. The ground of appeal Nos. 1 to 4 taken by assessee are allowed. 17. Ground of appeal No. 5 is consequential in nature. 18. In the result, appeal of the assessee is allowed." 4.2 We have carefully perused the entire factual matrix of the case including cited case laws, extension granted by CBDT for ay:2020-21 in filing of Form No. 10IC, and the relevant statutory provisions. We have observed that in the instant case before us, the CPC denied the benefit of new tax regime u/s 115BAA by treating that the assessee has not opted for the new tax regime u/s 115BAA. On the other hand, the assessee filed return of income of 30.10.2023 within due date u/s 139(1) and is claiming that it opted for new tax regime scheme u/s 115BAA under the 'filing status' in 'Part A-Gen'. The assessee has filed Form No. 10IC on 07.02.2024, and it is claimed that there was inadvertent and bonafide omission by the accountant of the assessee in not filing the form no 10IC along with return of income filed on 30.10.2023. Affidavit from accountant is filed as an additional evidence before the Tribu....