Ravi Kant Luthra Vs ADIT (ITAT Amritsar)
ITAT Amritsar allowed the appeal of the assessee, Ravi Kant Luthra, and held that the benefit of the lower tax rates under the new tax regime prescribed under section 115BAC could not be denied merely because Form 10IE was filed nine days after the prescribed due date, particularly when the delay was attributed to technical glitches in the income-tax portal and the form was available with the Assessing Officer/CPC before processing of the return. The assessee had originally filed his return of income on 11.01.2022 declaring total income of Rs.16.80 lakhs under the old tax regime and claimed deductions under Chapter VI-A. He subsequently filed a revised return on 24.03.2022 opting for taxation under the new regime under section 115BAC and filed Form 10IE on the same date, claiming a refund of Rs.26,000/-. The prescribed due date for filing Form 10IE was 15.03.2022, being the extended date pursuant to CBDT Circular No. 1/2022. CPC rejected the claim under section 143(1) on 05.07.2022 on the ground that Form 10IE had not been filed before the due date for filing the return under section 139(1).
Before the first appellate authority, the assessee explained that technical glitches in the portal had prevented timely filing of Form 10IE and that the delay was only nine days. The CIT(A), however, rejected the contention, observing that section 115BAC(5) stipulated that the benefit would not apply unless the option was exercised in the prescribed manner within the due date for filing the return. Before the Tribunal, the assessee emphasised that several CBDT circulars issued during the relevant period themselves recognised difficulties faced by taxpayers and stakeholders in electronic filing. Reference was made to Circular No. 9/2021, Circular No. 17/2021 and Circular No. 01/2022. The assessee contended that once the technical problems were resolved and the utility started functioning, Form 10IE and the revised return were immediately filed on 24.03.2022. Significantly, both were filed before processing of the original return on 27.03.2022. It was therefore argued that the revised return validly filed under section 139(5), as well as Form 10IE already available with CPC, could not be ignored.
