Delay in filing of Form No. 10-IC  has condoned as per CBDT Circular No. 19/2023: ITAT allows Appeal [Read Order]

The  Ahmedabad bench of Income Tax Appellate Tribunal (ITAT) while allowing the appeal filed by the assessee  observed that the assessee condoned the delay in filing of Form No.10IC as per the CBDT circular No.19/2023.

The Assessee, Sunpack Barrier Films Pvt. Ltd. is a private limited company deriving income from the business of manufacturing plain flexible films. After filing the return of the Income the department without considering the option under Section 115BAA, opted by the assessee calculated the tax. Accordingly, the CPC computed additional tax demand of Rs.22,90,650/- on the assessee, by computing the tax under the normal provisions.

Aggrieved by the order the assessee filed an appeal before the CIT(A) who rejected  the appeal. Therefore  the assessee filed another appeal before the tribunal.

Pritesh Shah, the counsel for assessee admitted that there was a delay in filing of Form No. 10-IC by the assessee.  Further submitted that CBDT has issued Circular No. 19/2023  for condoning the delay in filing of Form No. 10-IC for Assessment Year 2021-22. As per the aforesaid Circular, the CBDT has stated that delay in filing of Form No. 10-IC may be condoned, subject to fulfilling of 3 conditions for claiming the concessional rate of tax under Section 115 BAA of the  Income Tax Act.

The conditions are as below:

(I) the return of income for has been filed on or before the due date prescribed under Section 139 (1) of the Act

(II) the assessee company has opted for taxation under Section 115 BAA of the Act in item (e) of “filing status” in “Part-A-Gen” of the form of return of income ITR-6 and

(III) Form No. 10-IC is filed electronically on or before 31.01.2024 or 3 months from the end of the month in which the circular is issued, whichever is later .

The assessee submitted that the assessee company has fulfilled all the aforesaid conditions

Accordingly, he submitted that the interest income attributable to the said fund gets diverted at source. Accordingly, the decision rendered in respect of RIDF & STCRCF funds will equally apply to ST RRB Credit Refinance Fund.

Sushil Kumar Katiar,,counsel for revenue submitted that One of the conditions mentioned in Circular No. 06/2022 was that Form 10-IC was required to be filed electronically on or before 30.06.2022 or 3 months from the end of the month in which the Circular was issued, whichever is later. However, the assessee failed to fulfill this condition and there was a delay in filing of 10-IC beyond the stipulated period as mandated in the aforesaid Circular.

The tribunal observed that assessee has fulfilled all the conditions as mentioned in the aforesaid Circular and the assessee has also filed Form No. 10-IC within the stipulated timelines as specified in the aforesaid Circular, and accordingly is eligible for claim of being taxed under Section 115 BAA of the Act.

After reviewing the facts the ITAT bench of Siddhartha Nautiyal (Judicial Member)and Annapurna Gupta (Accountant Member) allowed the appeal filed by the assessee.

To Read the full text of the Order CLICK HERE

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