TaxTMI 
TaxTMI 
2026 (6) TMI 669
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....imation under section 143(1) of the Act dated 11-01-2023 wherein a normal tax rate was applied and the benefit u/s 115BAA of the Act was denied by the CPC. The reason for applying the normal tax rate was that the assessee has not followed the conditions to opt for concessional rate of taxation. It was observed that the assessee the Form 10-IC was filed after the due date and no condonation was sought by the assessee. Since the assessee filed Form 10-IC on 29-11-2022 and ITR on 20-12-2022 which was after the due date of filing of its ITR as specified under sub section (1) of section 139 of the Act. Accordingly, the CPC had applied normal rate of Tax. 3. Aggrieved the order of the CPC the assessee filed the appeal before the Ld. CIT(A), who vide his order dated 29-10-2025 dismissed the appeal treated time barred as well as the Form 10-IC was not filed within time. 4. Aggrieved by the order of the Ld. CIT(A) the assessee filed the present appeal before the tribunal by taking following grounds of appeal: 1. The AO, CPC erred in law and on facts in denying the benefit of concessional tax u/s 115BAA vide intimation u/s 143(1) and the first appellate authority erred in law ....
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....ly. The intention to opt the new regime was very much clear that the assessee calculated the tax u/s 115BAA of the Act. Form 10-IC was available with the CPC at the time of processing the return of income. The reason given for the delay was bonafide where the Form 10-IC was filed with a delay of 22 days is a procedural lapse. 8. We find that in the case of Kworks Technologies Pvt. Ltd. vs ITA 5773/Del/2024 relying the various judgment the Co-ordinate bench of Delhi Tribunal allowing the appeal of the assessee held as under: 9. The Hon'ble Supreme Court, in the case of Dilip Kumar (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 t....
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....ities' approach should be justice-oriented on merits. The clear and repeated position of law is that even if a procedural delay occurs due to "gemuine hardship", it should not prevent an assessee from receiving a rightful tax benefit. Therefore, in light of the aforesaid judgments of Hon'ble Supreme Court and Hon'ble High Courts, we are of the view that filing of Form 10-1C prior to filing of return is not mandatory and if "genuine hardship" is shown then delay may be condoned and in this respect the provision of law shall be taken as a 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 c....
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....is further fortified by the decision of Ahmedabad Tribunal in the case of Aprameya Engineering Ltd vs ITO reported in 164 taxmann.com 740 (Ahdbd Trib) wherein it was held as under:- 8.3 After considering the submissions, the judicial precedents cited and the specific facts of the case, we are of the opinion the delay in filing Form 10-IC, though a procedural requirement, should not invalidate the assessee's substantive right to the benefit of section 115BAA of the Act. 8.4 The CBDT's Circulars extending the due dates for filing such forms in earlier years indicate a recognition of such procedural difficulties. These Circulars indicate a degree of administrative flexibility and a recognition that procedural lapses should not necessarily lead to the denial of substantive benefits. Moreover, denving 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 ....
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....ifficulties. These 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. 8.5. In light of the above, the Ground Number is allowed. Ground Number 2 is an alternative ground and, therefore, not adjudicated. Ground Numbers 3 and 4 are general in nature, which are also not adjudicated." 13. The Co-ordinate Bench of Pune Tribunal in the case of Akshay (Akshay Devendra Biruri vs. DCIT, CPC [TS-402- ITAT2024(PUN)] (refer Page No. 18-21 of CLC) wherein the Hon'ble Tribunal held that 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 ....