2023 (12) TMI 462 - HC - Income Tax

Denial of benefit of lower rate of tax @ of 22% u/s 115BAA - failure to file Form 10-IC - Petitioner placed before the court Circular No.19/2023 dated 23.10.2023 issued by the Central Board of Direct Taxes (CBDT) which, in effect, condones the delay in filing Form 10-IC - HELD THAT - We are informed by petitioner that in terms of the said circular, a fresh Form 10-IC has been filed, albeit, electronically. Accordingly, petiotioner says that the petitioner fulfills the conditions referred to in paragraph 3 of the said circular. In these circumstances, the writ petition is disposed of, with a direction to the CBDT to process the petitioner s request contained in Form 10-IC. CBDT will process the aforementioned prescribed form within eight (8) weeks from the date of receipt of the order passed today. The interim order which was made absolute on 19.05.2023, shall continue to operate pending the aforementioned exercise, and for further three (3) weeks, in case the result is adverse to the interest of the petitioner.

Summary

Issues involved: Challenge to intimation under Section 143(1) of the Income Tax Act, 1961 for not filing Form 10-IC to opt for taxation at 22% under Section 115BAA.

Summary of Judgment:

Issue 1: Failure to file Form 10-IC for taxation at 22% under Section 115BAA
The petitioner challenged an intimation under Section 143(1) of the Income Tax Act, 1961 for not filing Form 10-IC to opt for taxation at 22% under Section 115BAA. The petitioner contended that sufficient information was provided in the return, but the intimation was issued due to the failure to file Form 10-IC. The court noted the requirement of Form 10-IC as mandated by Section 115BAA and Rule 21AE. The petitioner relied on Circular No.19/2023 by CBDT, which condoned the delay in filing Form 10-IC under certain conditions. The petitioner subsequently filed a fresh Form 10-IC electronically, fulfilling the conditions of the circular. The court disposed of the writ petition directing the CBDT to process the petitioner's request in Form 10-IC within eight weeks.

Key Phrases and Legal Terms:
- Section 143(1) of the Income Tax Act, 1961
- Section 115BAA
- Form 10-IC
- Circular No.19/2023 by CBDT
- Rule 21AE
- Writ petition
- CBDT
- Assessment Year (AY)
- Standing Counsel
- Opportunity to correct course
- Assessing Officer (AO)
- Central Board of Direct Taxes (CBDT)
- Rigour of the law
- Genuine hardship
- Condonation of delay
- Disposal of the writ petition
- Processing of Form 10-IC