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2024 (6) TMI 272 - AT - Income TaxDenial of benefit of New Tax Regime due to late submission of Form No.10IE - whether the CPC was justified in denying the benefit of New Tax Regime? - appellant, an individual deriving income under the head Salaries and income from Futures and Options in shares, filed the Return of Income under section 115BAC - HELD THAT - Admittedly, the appellant had failed to submit the prescribed Form No.10IE in order to claim the benefit of New Tax Regime before the due date for filing the return of income. Appellant had filed the said form on 10.01.2024 on which date the CPC had processed the return of income u/s. 143(1)(a) denying the benefit of New Tax Regime. In any event, it is not a mandatory requirement for filing of Form No.10IE but directory in nature. The Form No.10IE 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.10IE, as the same was available with the CPC at the time of processing the return of income.
Issues involved: Appeal against denial of benefit of New Tax Regime due to late submission of Form No.10IE.
Summary: The appeal was filed by the assessee against the order of Addl./JCIT(A)-2, Chennai for the assessment year 2023-24. The appellant, an individual deriving income under the head "Salaries" and income from Futures and Options in shares, filed the Return of Income under section 115BAC in the New Tax Regime on 31.07.2023 declaring income of Rs. 40,54,450/-. The income was assessed at the same amount by the CPC under section 143(1)(a) on 10.01.2024, denying the benefit of the New Tax Regime. The CIT(A)/NFAC confirmed the CPC's action, stating that the appellant submitted Form No.10IE after the prescribed due date of 31.07.2023. The appellant then appealed before the Tribunal. Despite due notice, the appellant did not appear for the appeal hearing. The Senior DR argued that the New Tax Regime was optional from A.Y. 2023-24 onwards, and the appellant failed to file Form No.10IE before the income tax return, leading to the denial of benefits. However, the Tribunal found that the Form No.10IE was available with the CPC at the time of processing the return, and it was not a mandatory requirement but directory in nature. Therefore, the Tribunal directed the CPC to consider the Form No.10IE and allow the benefit of the New Tax Regime. Consequently, the appeal filed by the assessee was partly allowed, and the order was pronounced on June 5th, 2024.
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