Getinge Medical India Private Limited Vs DCIT (ITAT Mumbai)
Whether delay in filing Form 10-IC invalidates the assessee’s option to be taxed at concessional rate u/s 115BAA, and whether ITAT can grant such benefit despite absence of condonation u/s 119(2)(b) and parallel proceedings.
The present decision of the Income Tax Appellate Tribunal, Mumbai Bench, deals with an important controversy concerning the interplay between substantive compliance and procedural requirements under section 115BAA of the Income-tax Act, 1961, particularly in the context of delay in filing Form No. 10-IC, and the extent of appellate powers in granting the concessional tax regime.
Statutory Framework and Scheme of Section 115BAA
Section 115BAA, inserted by the Taxation Laws (Amendment) Act, 2019 with effect from Assessment Year 2020-21, provides an optional concessional tax regime for domestic companies at the rate of 22%, subject to fulfilment of specified conditions. These conditions, as enumerated in sub-section (2), primarily require that the assessee should not claim certain deductions or incentives, including deductions under section 10AA, additional depreciation under section 32(1)(iia), deductions under section 35, and most deductions under Chapter VI-A.
Sub-section (5) of section 115BAA assumes critical importance. It stipulates that the benefit of the section shall not apply unless the option is exercised by the assessee “in the prescribed manner on or before the due date specified under section 139(1)”. The “prescribed manner” is provided under Rule 21AE of the Income-tax Rules, 1962, which mandates that such option shall be exercised by filing Form No. 10-IC electronically within the prescribed time.
