2024 (9) TMI 848 - AT - Income Tax

Denial of claim of the assessee opting for the provisions of Sec. 115BBA - delay in filling of Form.No.10-IC - HELD THAT - We find that the assessee has complied with the conditions as per CBDT circular discussed above. Whereas the CIT(A) order was passed on 27-07-2023, but the CBDT circular No.19/2023 was issued on 23-10-2023 and the assessee has filed the Form. No. 10-IC on 13.11.2023. And these details of filling of Form.No.10 IC and CBDT circular were not available at the time of processing of return of income U/sec 143(1) of the Act with the AO. Accordingly, we set aside the order of the CIT(A) and restore the issues to the file of the assessing officer to verify and examine the claim and consider the applicability of provisions under section 115BAA of the Act opted by the asseessee. And we allow the grounds of appeal for statistical purpose.

Summary

Issues:
1. Dispute over the computation of tax liability under section 115JB of the Income-tax Act despite opting for concessional tax regime under section 115BAA.
2. Failure to file Form 10-IC along with the return of income and subsequent processing under section 115JB.
3. Dismissal of the appeal by CIT(A) due to non-compliance with the provisions of section 115BAA.
4. Appellant's contention regarding timely filing of return of income and compliance with CBDT circular for condonation of delay in filing Form 10-IC.
5. Interpretation of CBDT circular and judicial decisions in similar cases.

Analysis:
1. The appellant contested the computation of tax liability under section 115JB despite opting for the concessional tax regime under section 115BAA. The CIT(A) upheld the action of the Centralized Processing Centre in computing tax liability under section 115JB, leading to the appeal before the Tribunal.

2. The dispute arose from the failure of the assessee to file Form 10-IC along with the return of income, resulting in the processing of the return under section 115JB. The CIT(A) dismissed the appeal, citing non-compliance with the provisions of section 115BAA due to the absence of Form 10-IC.

3. The CIT(A) based its decision on the non-filing of Form 10-IC before the prescribed due date, leading to the dismissal of the appeal. The assessee challenged this decision before the Tribunal, arguing that the delay in filing the form should not disentitle them from claiming the concessional tax regime.

4. The appellant argued that they filed the return of income within the extended due date under section 139(1) and later submitted Form 10-IC in compliance with the CBDT circular dated 23-10-2023. The Tribunal considered the appellant's compliance with the CBDT circular and set aside the CIT(A) order for further examination by the assessing officer.

5. The Tribunal analyzed the CBDT circular, judicial decisions, and the appellant's compliance with the circular's conditions. It noted that the details of Form 10-IC filing and the CBDT circular were not available during the initial processing of the return under section 143(1) of the Act. Consequently, the Tribunal allowed the appeal for statistical purposes, directing the assessing officer to verify the claim under section 115BAA.

In conclusion, the Tribunal allowed the appeal, emphasizing the importance of compliance with CBDT circulars and the timely filing of necessary forms for availing concessional tax regimes under the Income-tax Act.