Osttra India Services Private Limited Vs ACIT (ITAT Delhi)
115BAA Option Valid – ITAT Deletes CPC Demand After Holding Form 10-IC Filed Within Due Date
Assessee filed return for AY 2023-24 declaring income of ₹34.17 crore & opting for concessional tax regime u/s 115BAA. CPC processed the return u/s 143(1) & denied 115BAA benefit, applying tax @30% instead of 22%, raising a demand of ₹3.28 crore on the ground that Form 10-IC was filed beyond the due date. CIT(A) confirmed CPC’s action, relying on due date of 07-11-2022 for AY 2022-23 & holding that the option u/s 115BAA was not validly exercised.
Before Tribunal, Assessee argued that Form 10-IC was filed on 28-11-2022 which was within the actual due date of 30-11-2022 as per Explanation 2 to s.139(1). Further, Form 10-IC is required to be filed only once, & once exercised, the option applies to all subsequent years. CIT(A), however, wrongly considered a due date of 07-11-2022 and incorrectly concluded that the option was invalid for AY 2022-23, thereby denying the benefit for AY 2023-24.
Tribunal held that:
- the statutory due date for filing ITR for AY 2022-23 was 30-11-2022,
- Form 10-IC filed on 28-11-2022 was therefore within time,
- once exercised, the 115BAA option automatically applies to subsequent assessment years,
- denial of 115BAA benefit & consequential demand by CPC was invalid.
- Tribunal directed AO to delete the entire demand & held Assessee eligible for concessional tax rate u/s 115BAA. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
