Wingtech Mobile Communication (India) Private Limited Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad: Section 115BAA Benefit Cannot Be Denied on Technicalities; MAT Not Applicable Once Option Validly Exercised
In this case, the assessee company opted for the concessional tax regime under section 115BAA by filing Form 10-IC on 30.11.2022. However, CPC/AO treated the form as belated by considering an earlier due date (07.11.2022) based on the assessee’s incorrect selection in the ITR that transfer pricing provisions were not applicable, and accordingly computed tax under MAT provisions u/s 115JB. The CIT(A) upheld this view, treating compliance with timelines as mandatory.
The ITAT rejected the approach of the CIT(A) and AO, holding that the due date under section 139(1) depends on the class of assessee and not on whether audit reports (like Form 3CEB) were actually filed. Since the assessee had international transactions, it fell within the category where the due date was 30.11.2022, irrespective of filing lapses.
The Tribunal further held that an inadvertent error in the ITR (marking 92E as not applicable) cannot override substantive facts, especially when related party transactions were evident from financial statements. Non-filing or delayed filing of audit reports may attract penal consequences but cannot alter the statutory due date or deny substantive benefits.
