Failure to File Form No. 10IE on Time Does Not Impact Eligibility for Concessional Tax Rates u/s 115BAC of Income Tax Act: ITAT [Read Order]

The Kolkata Bench of Income Tax Appellate Tribunal ( ITAT ) ruled that the failure to file Form No. 10IE on time does not impact eligibility for concessional tax rates under Section 115BAC of the Income Tax Act,1961.

Pran panda,appellant-assessee,filed his return for A.Y. 2021-22 under Section 139(1) claiming the concessional tax rate under Section 115BAC. The Central Processing Centre ( CPC ), processed the return but rejected the claim, stating that Form No. 10IE was not filed electronically before the due date. Consequently, an intimation under Section 143(1) was issued on 22nd March 2022, denying the benefit.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The assessee, aggrieved by the intimation, filed an appeal before the CIT (A) with a delay of 709 days. The CIT(A) dismissed the appeal, finding the reasons for the delay insufficient, and upheld the CPC’s decision.

The assessee dissatisfied with the order of CIT(A) appealed before the tribunal,primarily disputing the denial of the concessional tax rate under Section 115BAC. Despite multiple notices, no one appeared on behalf of the assessee. Consequently, the tribunal proceeded to decide the case on its merits, with support from the Departmental Representative ( DR ).

The assessee complied with all other provisions of Section 115BAC and argued that this procedural lapse should not deny the concessional tax benefit, citing cases where similar lapses were condoned.

The DR upheld the orders of the AO and CIT (A), stating that the provisions of the Act are clear and mandatory. Form No. 10IE must be filed by the due date under Section 139(1) to qualify for the concessional tax rate under Section 115BAC. The assessee’s failure to do so disqualified him from claiming the concessional tax benefit.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The two member bench comprising Sonjoy Sarma ( Judicial Member ) and Rakesh Mishra ( Accountant Member ) considered the submissions of the DR and reviewed the case details. It was clear that the assessee failed to file Form No. 10IE on time, but had met all other conditions under Section 115BAC.

The appellate tribunal noted that there was no loss to the Revenue due to this mistake and that past rulings allowed for technical lapses to be overlooked if no substantial justice was denied. Therefore, it decided that the failure to file Form No. 10IE on time did not affect the assessee’s eligibility for the concessional tax rate, as long as other conditions were met.

The tribunal then condoned the delay in filing and instructed the AO to grant the concessional tax rate, subject to verifying the other conditions.

Ultimately, the appeal filed by the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates

Pran panda [PAN : AFVPP3562N] & Rama Panda [PAN : ANFPP8233J] vs I.T.O. , 2024 TAXSCAN (ITAT) 1448