TaxTMI 
TaxTMI 
2026 (6) TMI 1029
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....al: 1. That the order passed by the Ld. JCIT(A)-1 Gurgaon is bad in law and facts and is liable to be quashed. 2. That the Ld. JCIT(A)-1 Gurgaon has erred in law and facts in confirming demand of Rs. 90,030/- raised by the Ld. CPC in an order passed u/s 154 of the Act by processing the return of income in old regime despite the fact that the appellant had filed the return of income in new regime. 3. That the Ld. JCIT(A)-1 Gurgaon has erred in law and facts in confirming the demand raised by the Ld. CPC by processing the return of income for A.Y.2023-24 under the old tax regime despite the appellant having validly opted for the New Tax regime u/s 115BAC and having duly filed Form 10IE on 26-11-2022. 3.1 Th....
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.... order passed u/s 143(1) of the Act, the assessee filed the appeal before the Ld. JCIT(A). The Ld. JCIT(A) dismissed the appeal of the assessee on the ground that the assessee though opted for the scheme of taxation under section 115BAC in his return of income but failed to file fresh Form 10IE for the A.Y.2023-24 for availing the benefits of new tax regime as form 10IE and ITR filed in A.Y. 2021-22 was filed after the due date. The relevant findings and observations of the Ld. Add/JCIT(A) is reproduced below: 4.4 A perusal of the documents available on record reveals that although the appellant had opted for new tax regime in the A.Y.202-23. CPC has processed the ITR of the appellant without granting it the benefits of provisions ....
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....sed the records. In the instant case the assessee filed his return of income on 28- 10-2023 which was processed on 10-01-2024 under section 143(1) of the Act, by the CPC denying the benefit of new tax regime claimed by the assessee under section 115BAC of the Act as the assessee has failed to file the prescribed Form 10IE before the due date for filing the return of income. The Ld.JCIT(A) rejected the claim of the assessee for the relevant year 2023-24 for the reason that the assessee filed Form 10IE on 26-11-2022 for A.Y.2022-23, no fresh Form 10IE was filed for the A.Y. under consideration. It is contended by the Ld. AR that the observation of the Ld. JCIT(A) is not correct on account of the fact that the assessee's form 10IE was already ....
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....nly once for a previous year other than the year in which it was exercised and thereafter, the person shall never be eligible to exercise option under this section, except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available. Provided further that the provisions of this sub-section shall not apply for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024. 6.1. The second proviso reproduced hereinabove has been inserted by Finance Act, 2023, w.e.f. 1.4.2024. 7. A perusal of the aforesaid provisions of section 115BAC of the Act would reveal that the statute had given a right to the assessee's to opt for ....
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....that Form 10IE was already on record and also Acknowledgement number and date of filing of the said Form and it has been duly intimated to the authorities that she has not withdrawn the exercised option of taxation under the new regime and that return may be processed and she may be taxed as per the provisions of section 115BAC of the Act. A perusal of above said provisions would reveal that the assessee had right to exercise the said option of taxation under new regime upto the AY 2023-24. Therefore, the lower authorities are not justified in not allowing the assessee to avail the benefit of the taxation under the new regime. It has been, time and again, held that the income-tax authorities are not supposed to punish the litigations for th....