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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 ..... f Taxation and Other Laws (Relaxations and Amendments of Certain Provisions) Act 2020, are required to be interpreted and whether dehors the statutory linkage between the time permissible for furnishing of return under section 139(1) and filing the intimation of exercising the option for the concessional regime of taxation under section 115BAA(5), such a linkage can be diluted by the peculiar scheme of relaxations under the Taxation and Other Laws (Relaxations and Amendments of Certain Provisions) Act 2020. 3. The issue in appeal lies in a very narrow compass of material facts. The assessee before us is a private limited company engaged in the business of trading, sourcing and supplying organic and natural produce from India to buyers internationally. The assessee has opted for the taxation under the concessional scheme of taxation under section 115BAA. This concessional scheme of taxation is broadly like this. Section 115BAA(1) provides that, "notwithstanding anything contained in this Act but subject to the provisions of this Chapter, other than those mentioned under section 115BA and section 115BAB, the income-tax payable in respect of the total income of a person, being a dome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was levied tax @ 30%. Aggrieved, the assessee carried the matter in appeal before the learned CIT(A) but without any success. The learned CIT(A) upheld and justified the rejection of the assessee‟s stand with respect to taxability @ 22% primarily on the ground that the option under section 115BAA(5), by way of filing of form 10-IC, was not exercised within the time prescribed under section 139(1) which is a sine qua non for availing the concessional tax regime under section 115BAA. Learned CIT(A) thus upheld the stand of the Assessing Officer in declining the benefit of the concessional tax regime under section 115BBA, and declined to interfere in the matter. The taxability @ 30%, The assessee is not satisfied with the stand so taken by the learned CIT(A) and is in further appeal before us. 4. We have heard the rival contentions, perused the material on record, and duly considered the facts of the case in the light of the applicable legal position. 5. While Shri Sridharan, learned senior counsel for the assessee, has made elaborate submissions on various facets with respect to the scheme of Section 115BAA, implications of the provisions of the Taxation and Other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other application under the Income Tax Act, stand segregated. It is in this backdrop, according to the learned senior counsel, that the submission of form 10IC, being an exercise of option under section 115BAA, was permissible up to 31st March 2021. It is thus submitted that the option for the concessional tax regime under section 115BAA was properly exercised, and that the authorities below erred in law and on facts in declining the same. Smt Desai, learned Departmental Representative, submits that this plea was not taken up before the first appellate authority, and we must not, therefore, adjudicate on the same on merits. Without prejudice to this line of submission, it is reiterated that in terms of the provisions of Section 115BAA(5), "nothing contained in this section shall apply unless the option is exercised by the person in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the 1st day of April 2020 and such option once exercised shall apply to subsequent assessment years". Our attention is then invited to Rule 21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded to "furnishing of return under section 139" [see clause i of third proviso to Section 3(1) of TOLA] and "filing of any appeal, reply, 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" [see Section 3(1)(b) read with Section 2(1)(b)(ii) of TOLA]. Section 2(1)(b)(ii) provides that the Income Tax Act 1961 is one of the "specified Acts" under the TOLA, and Section 3 (1)(b) of TOLA, inter alia, provides as follows: Relaxation of certain provisions of specified Act. 3. (1) 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- ...... (b) 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; ..... and where completio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. As stated by Justice Lush, in the classic case of Mullins Vs Treasurer of Surrey [(1880) 5 QBD 70], "when one finds proviso to a section, the natural presumption is that, but for the proviso, the enacting part of the section would have included subject matter of the proviso" [See Principles of Statutory Interpretation by Justice G P Singh- 14th Edition @ Page 215]. Quite clearly, therefore, when the time limit for filing the income tax return under section 139 is specifically carved out of the scope of Section 3(1), it is clear that the other time limits under the Income Tax Act, 1961, for the statutory filing obligations, were indeed covered by Section 3(1) -to which such an exception was carved out. There is thus clear segregation of time limits between what is covered by the specific exception set out in the proviso and what is not covered by the exception set out in the related proviso. In respect of what is not covered by the exception set out in the proviso, the provisions of Section 3(1)(b) will apply, extending the relaxation to 31st March 2021 uniformly. The filing of the income tax return and the exercise of an option for the concessional regime of taxation under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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