Rajeev Pandurang Kamat Vs ITO (ITAT Pune)
Income Tax Appellate Tribunal (ITAT) Pune Bench, in a decision pronounced on May 5, 2025, has ruled in favor of Rajeev Pandurang Kamat, an individual assessee, allowing him the benefit of the new tax regime under Section 115BAC of the Income Tax Act, 1961, for Assessment Year (AY) 2023-24. The Tribunal’s decision overturns the orders of the Central Processing Centre (CPC), Bengaluru, and the Additional/Joint Commissioner of Income Tax (Appeals)-1, Ludhiana (Addl./JCIT(A)), which had denied the benefit citing a failure to file the prescribed Form 10IE for the relevant assessment year.
The case centered on the assessee’s attempt to opt for the new, concessional tax regime. For AY 2023-24, Mr. Kamat filed his return of income on July 27, 2023, declaring a total income of Rs. 26,07,690/-. However, when the return was processed by the CPC under Section 143(1) of the Act on January 10, 2024, the tax liability was computed under the old tax regime, denying the assessee’s choice for Section 115BAC. This resulted in an additional demand of Rs. 87,160/-.
Aggrieved by the CPC’s action, Mr. Kamat filed an appeal before the Addl./JCIT(A). Although the appeal was filed with a delay, the Addl./JCIT(A) condoned it and admitted the appeal for adjudication. During the appellate proceedings, the assessee submitted written explanations. However, the Addl./JCIT(A) dismissed the appeal, asserting that while the assessee opted for the Section 115BAC scheme in his return of income, he failed to file Form 10IE for AY 2023-24. The Addl./JCIT(A) also noted that the assessee’s claim was a continuation from the preceding AY 2022-23, where a similar claim had been disallowed by the Department due to belated filing of Form 10IE on September 20, 2022. The Addl./JCIT(A) stated that a valid option not having been exercised for AY 2022-23 meant the assessee was not eligible for the lower tax rate in subsequent assessment years.
