Sambaiah Dara Vs ITO (ITAT Hyderabad)
The Hyderabad Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeals for Assessment Years (AYs) 2021-22 and 2023-24 concerning denial of the concessional tax regime under Section 115BAC of the Income Tax Act, 1961. For AY 2021-22, the assessee filed the return on 10.02.2022 declaring total income of Rs.17,93,423 and opted for the new tax regime by filing Form No.10-IE on 31.01.2022. The return was processed under Section 143(1) on 04.08.2022, but the AO/CPC computed tax under the old regime and raised a demand of Rs.95,080 on the ground that the return and Form No.10-IE had not been furnished by the due date under Section 139(1). The assessee’s application under Section 154 was rejected, and the CIT(A) upheld the denial, observing that Section 115BAC read with Rule 21AG required Form No.10-IE to be filed by the Section 139(1) due date.
Before the Tribunal, the assessee submitted that the return was filed within the time permitted under Section 139(4), while Form No.10-IE had been filed before the AO passed the order under Section 143(1). The assessee relied on various Tribunal decisions. The Revenue contended that filing Form No.10-IE by the Section 139(1) due date was mandatory under Section 115BAC(5).
