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TMI Blog2022 (7) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... r Laws (Relaxations and Amendments of Certain Provisions) Act 2020. The time permitted for filing of form 10-IC, by virtue of section 3(1)(b) of TOLA, must be treated as 31st March 2021, even as the time permitted for filing of the income tax return under section, in the light of third proviso to Section 3(1) and read with subsequent notification, was only upto 15th February 2021. The plea of the assessee thus is indeed correct. The short question before us relates to the interpretation of provisions with respect to relaxations to mitigate the hardships caused during the Covid pandemic period, by the Taxation and Other Laws (Relaxations and Amendments of Certain Provisions) Act 2020, and it is our considered view that such relaxation provisions must be interpreted in a liberal and non-pedantic manner, and so as to give full effect to the relaxations permitted by the legislature. Viewed thus also, the proposition canvassed by the assessee is a reasonably possible view of the matter, and it merits acceptance. In view of all these discussions, and bearing in mind the entirety of the case, we uphold the plea of the assessee, and direct the Assessing Officer to accept the exercise of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of the total income of a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall, at the option of such person, be computed at the rate of twenty-two per cent, if the conditions contained in sub-section (2) are satisfied . Section 115BAA(2), in turn, refers to the computation of income (i) without any deduction under the provisions of section 10AA or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) or sub-section (2AB) of section 35 or section 35AD or section 35CCC or section 35CCD or under any provisions of Chapter VI-A other than the provisions of section 80JJAA or section 80M; (ii) without set off of any loss carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); (iii) without set off of any loss or allowance for unabsorbed depreciation deemed so under section 72A, if such loss or depreciation is attributable to any of the deductions ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplications of the provisions of the Taxation and Other Laws (Relaxations and Amendments of Certain Provisions) Act 2020 [hereinafter referred to as the TOLA ], and several other nuances of law, for the reasons we will set out in a short while, it is sufficient to take note of his basic plea- i.e. in terms of the requirement of section 3(1)(b) of TOLA, the time limit for filing of form 10-IC, for the assessment year 2020-21, stands extended to 31st March 2021, and, to this extent, the requirement of filing form 10-IC within the time permitted for filing an income tax return under section 139(1), stands superseded by the TOLA provisions. Shri Sridharan, learned senior counsel, invites our attention to the scheme of Section 3(1)(c) of TOLA, which provides that where any time limit has been specified in, or prescribed or notified under, the specified Act, which falls during the period from the 20th day of March 2020 to the 31st day of December 2020, or such other date after the 31st day of December 2020, as the Central Government may, by notification, specify in this behalf, for the completion or compliance of such action as filing of any appeal, reply, application or furnishing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years . Our attention is then invited to Rule 21AE, prescribing the manner in which this option is to be exercised by the filing of Form 10-IC. It is pointed out that the extended time limit for submission of return under section 139(1) was only up to 15th February 2021, whereas the form 10IC was submitted on 31st March 2021. Learned Senior Departmental Representative further submitted that the Income Tax Act, 1961 does not provide for the extension of time limit for filing of form 10IC, and, therefore, once the time limit for filing of income tax return expires, it is not to an assessee to claim the concessional rate of tax under section 115BAA. The distinction being canvassed by the learned senior counsel between the time limit for filing of income tax return and for exercising the option under section 115BAA, according to the learned Senior Departmental Representative, was wholly devoid of any merits inasmuch section 115BAA(5) clearly provides for the exercise of option within the time permitted for filing of the income tax return. We are thus urged to confirm the action of the authorities below, and decline to interfere in the matter. In a brief rejoinder on this issue, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the specified Act; .. and where completion or compliance of such action has not been made within such time, then, the time-limit for completion or compliance of such action shall, notwithstanding anything contained in the specified Act, stand extended to the 31st day of March, 2021, or such other date after the 31st day of March, 2021, as the Central Government may, by notification, specify in this behalf: 7. A plain reading of the above statutory provision shows that the time limit for filing of filing between 20th March 2020 and 31st December 2020 in respect of filing of any appeal, reply or application or furnishing of any report, document, return or statement or such other record, by whatever name called, under the provisions of the specified Act (i.e. the Income Tax Act, 1961) stood extended to a date not earlier than 31st March 2021. There is no dispute that the original date of filing of income tax return fell within this period, and in terms of the provisions of Rule 21AE, the option was to be exercised in the prescribed manner, i.e. by filing form 10-IC. The requirement of Section 115BA(5) admittedly was that it is within this time limit that the option ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an option for the concessional regime of taxation under section 115BAA are two distinct obligations. When the overriding provisions of TOLA provide separate relaxations for the purpose of the legal obligations with respect to the filing of return vis- -vis filing of other documents, to that extent, specific relaxation provisions under the TOLA must make way for rather general provisions with respect to various statutory obligations. If a relaxation provision, as the TOLA is, visualizes separate parameters of relaxation for the income tax returns vis- -vis other documents, it cannot be open to the revenue to negate the same on the ground that the scheme of the Income Tax Act 1961 treats the filing obligations in respect of the same at par. When the economic activities worldwide were seriously disrupted on account of the Covid pandemic, if more relaxations were required to be given, in the wisdom of the legislature, in respect of filing documents other than income tax returns, such statutory relaxations could not be declined on the ground that this differentiation is alien to the scheme of the Income Tax Act, 1961. The general scheme of timeframe prescribed under the Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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