9911796707
TMI Blog2025 (3) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961, seeking condonation of delay in filing Form 10-IC as required to avail the concessional tax rate prescribed under Section 115BAA of the Act. 2. The petitioner is engaged in the business of manufacturing of tyres. For the Assessment Year 2020-21, the petitioner filed its returns on 05.02.2021 with the introduction of Section 115BAA of the Act, the petitioner was eligible for a corporate tax rate at 22% (excluding surcharge and cess) on its total income. The petitioner would be entitled to avail of the option under Section 115BAA of the Act, provided it foregoes claims for deductions and allowances as specified under Section 115BAA(2) of the Act. The petitioner, while filing its return in column 8, had opted for taxation under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner thus filed an application under Section 119 (2) (b) of the Act inter alia stating that the due date for filing Form 10-IC in terms of Rule 21AE of the Income Tax Rules, 1962 was on or before 15.02.2021, however, during the relevant period, the tax function of the company was carried out remotely due to Covid-19 restrictions imposed by the Government. Conscious of the difficulties faced in view of the pandemic, the time limit for filing Form 10-IC was extended up to 30.06.2022. The petitioner had not filed Form 10-IC, even within the extended period, which the petitioner submitted was in view of the fact that it was under the bona fide impression that the above requirement viz., filing of Form 10-IC had already been complied with. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or "expedient" to avoid "genuine hardship", that the petitioner be permitted to file Form 10-IC in support of its exercise of option under Section 115BAA of the Act. 5. In this regard, it was submitted by the learned counsel for the petitioner that Section 119 (2) (b) has been considered by various High Courts including Hon'ble Supreme Court and it has consistently been held that the discretion under this provision ought to be exercised liberally. It was then submitted by the learned counsel for the petitioner that the belated filing of Form 10-IC in support of the option exercised under Section 115BAA of the Act had been dealt with by this Court in W.P.No.3425 of 2024 dated 13.11.2024 wherein after referring to various case laws on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r having failed to comply with the filing of Form 10-IC within the extended period warrant cannot find fault with the rejection of the application under Section 119 (2) (b). 7. Heard both sides and perused the material available on record. 8. This Court, after carefully considering the submissions and examining the scope, purport and object of Section 119 (2) (b), finds that identical submissions were made before this Court and the same was rejected in W.P. No. 3425 of 2024 dated 13.11.2024. The relevant portion is extracted here under: "10. Section 119 (2) (b) vests power in the Board to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after the period specified under the said Act, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... important, especially when a party seeks the benefits of an exemption clause that are important. Substantial compliance with an enactment is insisted, where mandatory and directory requirements are lumped together, for in such a case, if mandatory requirements are complied with, it will be proper to say that the enactment has been substantially complied with notwithstanding the non-compliance of directory requirements. In cases where substantial compliance has been found, there has been actual compliance with the statute, albeit procedurally faulty. The doctrine of substantial compliance seeks to preserve the need to comply strictly with the conditions or requirements that are important to invoke a tax or duty exemption and to forgive non- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent shall proceed to deal with the claim of the petitioner under Section 115BAA on merit and in accordance with law." 8.1. Following the same, this Court is inclined to set aside the order passed under Section 119 (2) (b). In view thereof, the impugned order dated 26.03.2024 is set-aside, the respondents shall keep the portal open to enable the petitioner to upload the Form 10-IC and the petitioner shall file the Form 10-IC within a period of four weeks from the date of receipt of a copy of this order, thereafter the respondents shall proceed to deal with the claim of the petitioner under Section 115BAA on merit and in accordance with law. 9. Accordingly, this writ petition is disposed of on the above terms. 10. There shall be no or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
