Balshiram Dattatray Thora Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune, allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals), NFAC, relating to Assessment Year 2023-24, concerning denial of the benefit of the new tax regime under Section 115BAC of the Income Tax Act, 1961.
The assessee, an individual, filed the original return of income under Section 139(1) on 27.07.2023 and a revised return on 20.10.2023, opting for taxation under the new tax regime. The assessee had originally exercised the option under Section 115BAC by filing Form 10-IE on 03.02.2022 for Assessment Year 2021-22 and had never withdrawn that option. While filing both the original and revised returns for Assessment Year 2023-24, however, the assessee inadvertently mentioned that the first year of opting for the new tax regime was Assessment Year 2022-23 instead of Assessment Year 2021-22.
Based on this discrepancy, the Central Processing Centre (CPC), while issuing an intimation under Section 143(1) dated 10.01.2024, denied the benefit of Section 115BAC. The assessee thereafter filed rectification applications under Section 154. Although the first rectification applications repeated the same incorrect details, subsequent applications filed on 01.02.2025 and 16.04.2025 correctly stated the particulars relating to Form 10-IE. Nevertheless, by order dated 28.04.2025 passed under Section 154, the CPC continued to deny the benefit of Section 115BAC and raised a tax demand of ₹47,242.
