TaxTMI 
TaxTMI 
2026 (6) TMI 814
X X X X Extracts X X X X
X X X X Extracts X X X X
.... at page no 1 in "Part A-Gen" it duly opted to be taxed under the provisions of section 115 BAA. The company had a book profit of Rs.37,83,532/- whereas total income was Nil due to brought forward losses. As provision of section 115JAA is not applicable on companies opting to be taxed under the provisions of section 115BAA, no MAT u/s 115JA was paid on the book profits. The assessee company was under bonafide impression that Form 10-IC has been filed on 06.10.2022 vide acknowledgement number 619257181061022 and this fact was duly mentioned in the return Form. Accordingly no Form 10-IC was filed in the relevant assessment year. The company on receipt of intimation u/s 143(1) noted that benefit of section 115BAA has not been given and tax u/s 115 JAA @ 15% on the book profits of the company along with cess @ 4% and interest has been charged and a total demand of Rs. 5,29,720/- (after adjusting TDS and advance tax) has been raised. The appellant company thereafter checked its earlier records and found that Form 10-IC has been inadvertently left to be filed and the date of filing and acknowledgement number does not relate to the appellant company. It thereafter filed 10IC on 15.02.2025....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on the assessee for a purely procedural default, contrary to the intent and purpose of the concessional tax regime introduced by the Finance Act, 2019." 5. We have heard the ld. AR and the ld. DR and perused the material on record. The ld. AR at the very outset submitted that the case of the assessee is covered by the order of Delhi Tribunal in the case of KN Support Services Pvt. Ltd. Vs. DCIT, ITA No. 5774/Del/2024 order dated 29.08.2025. He has also relied the case of Mumbai Tribunal in Getinge Medical India Pvt. Ltd. Vs. DCIT, ITA No. 4872/Mum/2024 13.03.2026 especially para 6.11 where similar issue has been decided in favour of the assessee. 6. In support of his argument, the ld. AR has also filed written submissions wherein it is submitted that the assessee is a domestic company and eligible to avail the benefit of tax u/s 115BAA of the Act as it fulfill all substantive conditions for availing such benefit. It is clarified that the only fault of the assessee company was that it did not file Form 10-1C before the due date of filing of the return because it was under bonafide impression that it had filed Form 10-1C in the earlier year on 06.10.2022. It is further submitte....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... procedural lapses should not lead to denial of substantive benefits. The relevant extract of the judgement is reproduced as under: 8.1... "In the instant case, the Ld. A.O. as well as the Ld.CIT(A) has denied benefit of concessional tax rate u/s 115BAA of the Act on account of an inadvertent error on the part of the assessee in not e-filing Form 10 IC before due date prescribed. We are, therefore, of the view that there is sufficient compliance if the Form 10 IC has been filed during the course of assessment proceeding, since there is no material objective to be achieved by the assessee in not efiling the same, once the intent was very well declared in Form 3CD. 8.2. Considering the principle of beneficial interpretation, the procedural requirements should not override substantive benefits. The Courts have taken a lenient view on procedural lapses when substantive benefits are involved. SC ruling in the case of CIT v. G.M. Knitting Industries (P.) Ltd. reported in (2015) 376 ITR 456 emphasized that the making of a claim of deduction is mandatory, but timing is directory. Even if the claim is made during the assessment proceedings, such a claim is to be allowed. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or filing of Form No.101E but directory in nature. The Form No.101E was very much available with the CPC and the CPC ought to have considered the same allowing the benefit of New Tax Regime. Therefore, we direct the CPC to amend the intimation by taking into consideration the Form No.101E, as the same was available with the CPC at the time of processing the return of income. We order accordingly." 14. The Co-ordinate Bench of Mumbai Tribunal in the case of Krishna Gopal Diwvedi HUF [TS-140-ITAT2025(Mum)] wherein the Hon'ble Mumbai Tribunal held as under: 7.9. "Coming to the instant case, we observe that till the date of processing the return filed by the Assessee for the A.Y. 202223, Form No. 101E for exercising the option for availing the benefits of new tax regime filed on 10-01-2022 for the AY 2021-22 was neither withdrawn nor rejected or made invalid but the same was still available or effective before the AO during the assessment proceedings or passing the Assessment order and therefore in our considered view, the return filed by the Assessee should have been considered, under the new tax regime provisions. Thus, the Assessee is entitled for the benefit o....