Mysim Therapeutics Pvt. Ltd. Vs ITO (ITAT Chennai)
Summary: The ITAT allowed the appeal of Mysim Therapeutics Pvt. Ltd. for AY 2022-23 and directed the Assessing Officer to grant the benefit of the concessional corporate tax regime under Section 115BAA of the Income-tax Act, 1961. The assessee had filed its return of income on 19.11.2022, whereas the due date under Section 139(1) was 07.11.2022. Form 10-IC was also ultimately filed after the prescribed due date. Consequently, CPC denied the assessee’s claim for taxation under Section 115BAA. The assessee thereafter filed a rectification application under Section 154, which was rejected, and the denial was subsequently confirmed by the Addl./JCIT(A)-2, Hyderabad.
The assessee explained that this was its first year of business and that it had attempted to file Form 10-IC on 07.11.2022 itself to avail the concessional tax rate. However, the form could not be filed on that date because of a technical glitch, either in the Income-tax portal or the assessee’s computer system. Significantly, the Income-tax portal itself showed 07.11.2022 as the date on which Form 10-IC had been created and saved. The assessee relied upon CBDT Circular No. 6/2022 dated 17.03.2022, under which delay in filing Form 10-IC had been condoned for the preceding assessment year to avoid genuine hardship to domestic companies opting for the new tax regime. ([TaxGuru][1])
The Tribunal found that the assessee had made genuine efforts to file Form 10-IC within the due date and that documentary evidence of the attempt was available on the Income-tax portal itself. The Revenue could not controvert these facts. Considering the genuine hardship and taking guidance from CBDT Circular No. 6/2022, the Tribunal held that the benefit should be extended to the assessee for the year under consideration as well. It accordingly allowed the assessee’s claim and directed the Assessing Officer to grant the concessional tax treatment and consequential relief.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal by the assessee is arising out of the order of Addl/JCIT(A)-2, Hyderabad in Appeal No0.NFAC/2021-22/10378224, order dated 23™ January, 2026. The rectification order under Section 154 of the Act was passed on 20™ April, 2024 for the assessment year 2022-23 by the Deputy Director of Income-tax, CPC, Bengaluru.
2. The only issue in this appeal of the assessee is as regards the order of the JCIT(A) confirming the action of the Assessing Officer in dismissing the rectification application filed by the assessee in confirming the denial of benefit under Section 115BAA of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).
3. Brief facts are that the assessee is a private limited company who filed its return of income on 19™” November, 2022 whereas the due date of filing of return under Section 139(1) of the Act was 7% November, 2022. Since Form 10-IC and subsequent ITR was filed after the due date, the CPC denied the claim of the assessee to be taxed under Section 115BBA of the Act. The assessee, against the denial of claim of assessment under Section 115BAA of the Act, moved rectification application dated 20™ April, 2024 stating that the income tax levied by the Assessing Officer at 30% while processing the return under Section 139(1) of the Act by the CPC, Bengaluru as against the rate applicable for domestic companies having turnover of less than 400 crores, as in the present case, at 25%. The assessee has been denied to be taxed under Section 115BAA and hence, moved rectification application stating the reason that the assessee filed return of income on 19™ November, 2022 whereas the due date for filing the ITR was 7″ November, 2022. The assessee explained that it tried to file Form 10-IC on 7″ November, 2022 in order to avail the lower tax rate as prescribed under Section 115BAA of the Act before filing of the ITR within the due date but somehow could not file due to technical glitch, whether with the income tax portal or with the computer system of the assessee. This action of the assessee trying to file Form 10-IC on 7% November, 2022 was proved by the fact that Form 10-IC is showing date as 7″ November, 2022 in the income tax portal itself as the date on which the said form was created and saved. Subsequently, after filing Form 10-IC, the ITR was filed claiming the tax rate under Section 115BAA. But, this claim was denied by the CPC. Learned Counsel for the assessee now before us contended that the CBDT issued Circular No0.6/2022 dated 17™ March, 2022 for the preceding assessment year wherein delay in filing of Form 10-IC was condoned. Taking help of this Circular, the assessee stated that since this was the first year of business of the assessee, it was not able to ascertain the interpretation of provisions of Section 115BAA of the Act but, the assessee has tried its best to file Form 10-IC on 7″ November, 2022 and that information is available on record.
4, Learned Counsel for the assessee now before us contended that this is a case of genuine hardship and assessee has tried to file Form 10-IC on 7™ November, 2022 in order to avail lower rate of tax under Section 115BAA of the Act. When these facts were confronted to the learned Senior DR, he could not controvert the above facts.
5. After hearing the arguments of both the sides and perusing the material placed before us, we are of the view that the assessee has made all efforts to file Form 10-IC and that evidence is available on record. In view of the CBDT Circular No.6/2022 dated 17 March, 2022 which is for the preceding year, we apply in this year also for the reason that the assessee has genuinely tried to file Form 10-IC on the due date which was not done due to technical glitch, whether with the income tax portal or with the computer system of the assessee. This action of the assessee trying to file Form 10-IC has been proved by the learned Counsel for the assessee before us by showing the date on the income tax portal i.e., 7″ November, 2022. In view of these facts, we allow the claim of the assessee and direct the Assessing Officer to assess the assessee under Section 115BBA of the Act and allow consequential relief.
6. In the result, the appeal of the assessee is allowed.
Decision pronounced in the open Court on conclusion of hearing on 11 August, 2026.
