Radiant Digital Solutions Private Limited Vs Principal Chief Commissioner of Income Tax (Telangana High Court)
The Telangana High Court considered a writ petition challenging an order dated 06.03.2026 whereby the respondent rejected the petitioner’s application for condonation of delay in filing Form 10-IC under Section 119(2)(b) of the Income Tax Act, 1961 for Assessment Year 2020-21. As a consequence of the rejection, the petitioner was denied the benefit of the concessional tax rate under Section 115BAA of the Act.
The petitioner, a private limited company promoted by non-resident Indians, submitted that its tax compliance for Assessment Year 2020-21 was handled by its Finance Manager. The petitioner filed its return of income under Section 139(1) on 15.02.2021 declaring total income of Rs.1,37,48,490 and opted for the concessional tax rate of 22% under Section 115BAA. The Tax Audit Report in Form 3CD also reflected the same, and taxes were computed and paid at the concessional rate, resulting in a refund claim of Rs.11,53,930. However, Form 10-IC, prescribed under Rule 21AE for exercising the option under Section 115BAA, was not filed separately because the petitioner believed that disclosure in the return and audit report constituted sufficient compliance.
The Centralized Processing Centre processed the return under Section 143(1)(a), denied the benefit under Section 115BAA, raised a demand of Rs.1,320, and denied the refund by intimation dated 18.12.2021. After discovering the issue in December 2022, the petitioner attempted to file Form 10-IC but could not do so because the portal no longer permitted filing. It therefore submitted an application dated 03.01.2023 seeking condonation of delay under Section 119(2)(b), explaining that the omission was inadvertent and caused genuine hardship. During the proceedings, the petitioner also relied upon CBDT Circular No.19/2023 dated 23.10.2023 and CBDT Circular No.17/2024 dated 18.11.2024. Nevertheless, the respondent rejected the application on the ground that filing Form 10-IC was a mandatory statutory requirement and that ignorance of law or negligence by the tax consultant could not constitute circumstances beyond the petitioner’s control.
