Sumana Arora Vs ITO (ITAT Bangalore)
Technical Lapse Shouldn’t Defeat 115BAC Benefit- Form 10-IE Delay Is Procedural: ITAT Restores New Tax Regime Claim
Bangalore ITAT “B” Bench, in Sumana Arora Vs ITO (ITA Nos. 2449 & 2450/Bang/2024, AYs 2022-23 & 2023-24; order dated 31.01.2025), set aside the orders of CPC & CIT(A) and remanded the matter for de-novo consideration of the option exercised u/s 115BAC, holding that mere procedural delay in filing Form 10-IE should not defeat substantive tax benefit.
Assessee had opted for the new tax regime u/s 115BAC by filing Form 10-IE on 30.08.2022 and filed return of income on the same date u/s 139(4). However, while processing return u/s 143(1), CPC ignored the 10-IE option and raised demand, on the ground that Form 10-IE was belated. Assessee’s subsequent replies & grievances before CPC were rejected. Appeals before CIT(A) were dismissed on limitation, without examining merits.
Tribunal noted that Form 10-IE was already available on the system before issuance of intimation u/s 143(1) and that filing of Form 10-IE is procedural in nature. It further observed that Assessee had been pursuing the matter diligently and the delay in filing appeals was sufficiently explained. Dismissing appeals purely on limitation without considering merits was held to be against principles of natural justice.
Accordingly, ITAT set aside the orders of lower authorities and remitted the matter to the JAO with a direction to re-examine the claim under section 115BAC on merits, after considering all material & granting due opportunity to Assessee. Both appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
