TaxTMI 
TaxTMI 
2026 (3) TMI 1714
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....me u/s 115BAC has been denied by the Ld. AO/CPC on the ground that Form 10IE for AY 2022-23 was filed after due date by the assessee i.e. on 06.08.2022. 3. Aggrieved, the assessee filed an appeal before the Ld. Addl./JCIT(A) who confirmed the action of the Ld. AO/CPC by observing as under : "7.1 Ground no. 01 raised by the appellant is related with the issue of rejection of option under section 115BACof IT Act which is adjudicated on the basis of facts of the case, merit and impugned assessment order as under : Upon careful perusal of impugned assessment order and information available or record it is seen that the appellant argued that since Form 10-IE was submitted in an earlier year and business income continued, she should be deemed to have opted for the alternative regime. However, this argument ignores the express statutory condition of exercising the option before the due date u/s 139(1) of IT Act. The language of Section 115BAC(5) is mandatory and not directory. The legislature has consciously linked the exercise of option to the due date of return filing to ensure certainty in revenue collection and computational uniformity. Where the return i....
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....der Section 139(4) cannot opt for the new regime. Therefore, the CPC's computation of tax under normal provisions is legally sustainable, and the demand raised is in accordance with law. Accordingly, ground no. 02 raised by the appellant being devoid of merit is dismissed herewith." 4. Dissatisfied, the assessee is in appeal before the Tribunal raising the following grounds of appeal : "1. On the basis of facts and in the circumstances of the case and as per law, the lower authorities have erred in denying the benefit of tax determination u/s 115BAC (New Scheme of Taxation) of the Income Act, 1961 (the Act) even when the benefit of New Scheme of Taxation is continued in terms of sub-sec (5)(i) of sec 115BAC, till it is withdrawn by the assessee as per proviso to sub-sec (5) of sec 115BAC of the Act. 2. Without prejudice to Ground No 1 above, in the facts and circumstances of the case as well as in law, the rejection of New Scheme of Taxation CPC, Bengaluru is beyond its scope provided u/s 143(1) of the Act. 3. The appellant craves leave to add, alter, omit or substitute any of the grounds at the time of hearing of the appeal." 5. The Ld....
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....ption by filing Form 10IE for AY 2022- 23 it shall continue for AY 2023-24 unless it is withdrawn by the assessee himself as per the provisions of section 115BAC(5)(i) of the Act. 9. Section 115BAC of the Act reads as under : "Tax on income of individuals, Hindu undivided family and others (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or a Hindu undivided family, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021 shall, at the option of such person, be computed at the rate of tax given in the following Table, if the conditions contained in subsection (2) are satisfied, namely:- TABLE Sr Total Income Rate of Tax 1 Upto Rs. 2,50,000/- Nil 2 From Rs. 2,50,000 to Rs. 7,50,000 05 per cent 3 From Rs. 5,00,000 to Rs. 7,50,000 10 per cent 4 From Rs. 7,50,000 to Rs. 10,00,000 15 per cent 5 From Rs. 10,00,000 to Rs. 12,50,000 20 per cent 6 From Rs. 12,50,000 to Rs.&n....
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....nch of the Tribunal in the case of Arun Gopilal Samnani (supra) on the impugned issue involving the similar set of facts has held as under : "12. As is evident from the bare perusal of the above, individuals and HUF have been given option for paying taxes at the rates prescribed in section 115BAC of the Act w.e.f. 1st April, 2021 subject to the condition that their income is computed as prescribed under sub-section (2),which says that the income is to be computed without claiming any exemption or deductions, loss or depreciation as specified in the said sub-section. The first proviso to section 115BAC states that the option exercised by the assessee shall be invalid, if the assessee fails to satisfy the conditions mentioned in subsection (2).That is the only prescription in law for treating the option to have been invalidly exercised. Sub-section (5) prescribes that for claiming the benefit of option, the assessee having income from business or profession needs to file prescribed form by the due date prescribed in the said section initially and such option exercised would thereafter be applicable for subsequent years. The prescribed form as per the Rule is form no. 10-IE. ....
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....port from the decision of the Jodhpur Tribunal in the case of Sanju Soni (supra) wherein relying on the decision of the Ahmedabad Bench in the case of Arun Gopilal Samnani (supra), the Tribunal held as under : "10. In Arun Gopilal Samnani v. Income-tax Officer * [2025] 174 taxmann.com 33 (Ahmedabad - Trib.), applicability of section 115BAC of the Act was involved. The question was as to whether the assessee despite having opted to pay taxes under the new regime as prescribed under section 115BAC of the Act in its income tax return, was rightfully denied its benefit by the CPC, Bangalore ? 11. Therein, as per facts, form no. 10-IE was not filed by the assessee in the impugned year. The same was filed by the assessee in the preceding year along with his return of income, but the said form having not been filed within the prescribed time, the assessee had not been granted the benefit of paying taxes in the new regime in the preceding year. So, the issue there was as to whether in the impugned year also, the assessee was required to file Form No. 10-IE to opt for paying taxes under new regime as per section 115BAC of the Act. As is evident from ....