TaxTMI 
TaxTMI 
2025 (10) TMI 1431
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....n consequently the CO filed by the assessee becomes infructuous in view the statement of Ld. DR. ITA No. 4327/Mum/2025, A.Y 2023-24 3. The revenue has raised the following grounds of appeal: a) On the facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition by not appreciating the fact that as per Rule 21AE of the I. T. Rules it is mandatory to file Form 10-IC avail the benefit Of Section 1I5BAA of the Act while the assessee has failed to file Form 10-IC, therefore not liable to be assessed under concessional rate of tax. b) On the facts and in circumstances of-the Case and in law, the Ld. CIT(A) has erred in deleting the addition by not appreciating the fact that the assessee Was duty bound opt for-the lower rate of tax as per Section 115BAA of the Act by filing the mandatory Form 10-1C and by not doing so there was no alternative left to the A.0. who disallowed the claim of the assessee. The appellant craves to leave to add, alter, amend and modify any of the above grounds of appeal either before or at the time of hearing of the appeal if considered necessary 4. As per the facts of the present case, the ass....
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....n Cess @ 4% 10,16,089 4% Education Cess Gross Tax Liability 1,99,16,614 2,64,18,318 Details of Taxes Tax Payable by appellant assessee Remarks As Computed U/s 143(1) by CPC Remarks Taxation option Opted for 115BAA No No Total income 7,91,34,670 7,91,34,670 Tax Payable on Total Income 1,97,83,668 22% As per Taxpayer - as turnover is below 400 crores in all previous assessment years 2,37,40,401 30% As Computed U/s 143(1) Surcharge 13,84,857 Surcharge @ 7% 16,61,828 7% Surcharge Health and education cess @4% 8,46,741 Education Cess @ 4% 10,16,089 4% Education Cess Gross Tax Liability 2,20,15,265 2,64,18,318 CPC has calculated excess tax of Rs. 44,03,053 and consequently interest thereon. Sr. No Particulars Amount Difference Remarks (A) Tax Payable as per Income Tax Return filed 1,99,16,614 (B) Tax Payable as per appellant - as apparent from record - Correct tax rate applicable 25% 2,20,15,265 20,98,651 (A)-(B) - A....
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....% - opted for section 115BAA- NOT ACCEPTED BY DEPARTMENT - For AY 2024-25-retuen filed - tax paid @22% - opted for section 115BAA - IT WAS ACCEPTED BY DEPARTMENT 10. After having gone through the entire facts and circumstances of the present case and also hearing the parties at length, we find that principally Ld. CIT(A) had recorded the findings to the effect that assessee had inadvertently filed Form 10IB instead of prescribed Form 10IC and assessee has right to be taxed at concessional rate of 22% provided if satisfy the prescribed condition of filing Form 10IC. At the same time Ld.CIT(A) also recorded a specific finding that filing of Form 10IC is a procedural requirement meant to operationalize the substantive right and mere non-filing or incorrect filing of such form cannot by itself extinguish or deny the substantive benefit of concessional tax rate, if otherwise permissible under law. Therefore in compliance of direction of Ld. CIT(A) the assessee had rightly filed Form No. 10IC on 20.09.2024 for previous year 2023-24 and since the income tax e-filing website does not allow filing of Form 10IC of earlier years, therefore separate Form 10IC was filed manually for....
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....Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings (Condition as to number of workers) - Assessment year 2005-06 - Even though necessary certificate in Form 10CCB along with return of income had not been filed but same was filed before final order of assessment was made, assessee was entitled to claim deduction under section 80-IB [In favour of assessee] Even though necessary certificate in Form 10CCB along with return of income had not been filed but same was filed before final order of the assessment was made, the assessee was entitled to claim deduction under section 80-IB. 15. Even otherwise the CBDT in its own circular supports the assessee's case as the CBDT itself recognized that delay or defects in filing Form 10-IC are procedural and condonable in nature: Circular No. 06/2022 dated 17.03.2022 - specifically provided for condonation of delay in filing Form 10-IC for A.Y. 2020-21. The circular makes it clear that where the assessee is otherwise eligible for the concessional regime under section 115BAA, the benefit should not be denied merely due to delay or technical lapse in filing the prescribed form. ....
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....) on or before due date for furnishing return of income as per Rule 21AE of Rules due to which its return was processed without giving benefit of lower rate of tax - Assessee relying upon CBDT Circular No. 19/2023 filed application under section 119(2)(b) before respondent to condone delay in filing Form 10IC and to permit it to file same electronically - However, respondent rejected application holding that assessee did not put any remark against Column (e) meant for giving option for taxation under section 115BAA and therefore, condition of CBDT Circular No. 19 of 2023 was not satisfied - Whether in absence of any provision to opt for taxation under section 115BAA item (e) 'Filing Status' in 'Part A-GEN' of Form of Return of Income ITR-6, same could not have been complied with by assessee - Held, yes - Whether when assessee had exercised option for lower rate of tax under section 115BAA which was clear from computation of income, assessee could not be deprived of lower rate of tax and delay in filing Form 10-IC ought to have been condoned - Held, yes [Para 25] [In favour of assessee] Circulars and Notifications : CBDT Circular No. 6/2022 dated 17-3-2023 and CBDT Circular No. 19/2....
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.... Principal Commissioner was required to permit assessee to file a fresh Form 10-IC by condoning delay in filing such Form Section 115BAA, read with section 119, of the Income-tax Act, 1961 - Certain domestic companies, tax on (Form 10-IC, filing of) - Assessment year 2020-21 - Assessee-company filed its return of income for assessment year 2020-21 declaring certain taxable income - It opted for taxation under section 115BAA and computed tax payable at rate of 22 per cent However, assessee inadvertently failed to electronically file Form 10-IC along with return of income within time limit specified in Circular No. 6 of 2022 dated 173-2022 - Thereafter, assessee filed an application under section 119(2)(b) to condone delay in filing Form 10-IC However, same was rejected on ground that authority was not empowered to condone delay in view of Circular No. 6 of 2022 - It was noted that it was bonafide belief of Chartered Accountant being statutory auditor of assessee that he had already filed Form 10-IC However, after having realised fact of its non-filing, Chartered Accountant had filed filed Form 10-IC belatedly - Whether since assessee had exercised option under section 115BAA whil....
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.... failed to file Form No. 10-IC and impugned order was passed raising demand on assessee - Whether fact that in view of Circular No. 19/2023, dated 23-10-2023, a fresh Form 10-IC had been filed by assessee electronically, delay in filling Form 10-IC was to be condoned - Held, yes - Whether therefore, a direction was to be issued to CBDT to process assessee's request contained in Form 10-IC - Held, yes [Paras 2, 3 and 6] [In favour of assessee] Circulars and Notifications: Circular No. 19/2023, dated 2310-2023 7. [2025] 176 taxmann.com 742 (Gujarat) HIGH COURT OF GUJARAT Camino Herbal Remedies (P.) Ltd. v. Principal Commissioner of Income-tax R/SPECIAL CIVIL APPLICATION NO. 20564 OF 2023 INCOME TAX : Where assessee company inadvertently failed to electronically file Form 10-IC within due date and filed belated Form and made an application under section 119(2)(b) to condone delay in filing such Form, since provisions of section 115BAA are in a way granting relief to assessee-companies to enable them to pay reduced rate of tax at 22 per cent, Principal Commissioner was required to consider facts of case and permit assessee to file a fresh Form 10IC and condone delay in ....
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.... a standing instruction to condone delay that occurred to assessee in filing of Form 10-ID Subsequently assessee was able to file Form 10-ID on online portal - Assessee thereafter filed an application under section 119(2)(b) to condone delay that occurred in filing Form 10 ID - Competent Authority rejected application - Whether since a series of Circulars namely Circular Nos. 6/2022, 19/2023 and recently 17/2024 had been issued by CBDT which goes to show that there has been a problem in large number of cases which assessee has faced in respect of filing Form 10-IC and 10-ID in time, given acknowledgment of problem by Department, it must be said that assessee had shown sufficient cause - Held, yes - Held, yes- Whether Competent Authority was to be directed to accept Form 10-ID filed by assessee to be legal and valid - Held, yes [Para 9] [In favour of assessee] Circulars and Notifications: Circular No. 6 of 2022, dated 173-2022; Circular No. 19 of 2023, dated 23-10-2023 and Circular No. 17 of 2024, dated 18-112024. 9. [2024] 162 taxmann.com 200 (Ahmedabad - Trib.) IN THE ITAT AHMEDABAD BENCH 'C' Sunpack Barrier Films (P.) Ltd. v. A. Director of Income-tax IT APPEAL N....
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.... CBDT allowed for condonation of delay in filing Form No. 10 IC for AY 2021-22, and assessee fulfilled all conditions laid in said circular including timely return filing and electronic submission of Form 10-IC, it would be eligible for concessional tax rate under section 115BAA Section 115BAA of the Income-tax Act, 1961 - Certain domestic companies, tax on (Form 10 IC) - Assessment year 2021-22 - Assessee-company engaged in the manufacturing of flexible films, filed its income-tax return for assessment year 2021-22 on 30-12-2021, and opted for reduced taxation under section 115BAA - However, CPC calculated the tax liability without considering this provision, resulting in an additional tax demand - Commissioner (Appeals) dismissed appeal, citing assessee's failure to file Form 10-IC within stipulated deadline as per Circular No. 06/2022 dated 17-3-2022 - assessee argued that Circular No. 19/2023 issued by CBDT allowed for condonation of delay in filing Form No. 10-IC for AY 2021-22, and it had met all conditions specified in Circular, including timely filing of income tax return, selection of taxation under section 115BAA, and electronic filing of Form No. 10 IC before deadlin....
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....06 - Even if form 3AA was not filed along with return of income but same was filed during assessment proceedings before final order of assessment was made, assessee was entitled for additional depreciation [In favour of assessee] Even if form 3AA was not filed along with the return of income but same was filed during assessment proceedings before final order of assessment was made, the assessee was entitled for the additional depreciation. Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings (Condition as to number of workers) - Assessment year 2005-06 - Even though necessary certificate in Form 10CCB along with return of income had not been filed but same was filed before final order of assessment was made, assessee was entitled to claim deduction under section 80-IB [In favour of assessee] Even though necessary certificate in Form 10CCB along with return of income had not been filed but same was filed before final order of the assessment was made, the assessee was entitled to claim deduction under section 80-IB. 13. SUPREME COURT OF INDIA Civil Appeal No. 10782 of 2013 and 4048 of 2014. D/d. 24.7.2015. Commissioner....