Vinmar India Private Limited Vs ITO (ITAT Mumbai)
The case before the Income Tax Appellate Tribunal Mumbai concerned an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals), which upheld the denial of concessional tax rate under Section 115BAA of the Income Tax Act for Assessment Year 2020–21.
The assessee had filed its return of income on 06.12.2020, within the extended due date, and had exercised the option for taxation under Section 115BAA by selecting the relevant option in the ITR-6 form. The assessee also asserted that it fulfilled all conditions required to avail the concessional tax regime. However, Form 10-IC, prescribed for exercising the option, was not filed within the due date. The assessee explained that the omission occurred inadvertently due to disruptions caused by the COVID-19 pandemic.
The Central Processing Centre (CPC) processed the return under Section 143(1) and denied the benefit of the concessional tax rate without providing any prior opportunity to the assessee. The assessee submitted that this violated principles of natural justice. Upon learning of the omission, the assessee subsequently filed Form 10-IC, though after the prescribed deadline.
The assessee contended that its intention to opt for Section 115BAA was clearly demonstrated in the return of income and that the failure to file Form 10-IC within time was a procedural lapse. It argued that such procedural non-compliance should not defeat a substantive claim, particularly when all eligibility conditions were satisfied and no dispute existed regarding compliance with the substantive provisions. It was also pointed out that in subsequent assessment years, the concessional tax rate had been allowed by the Revenue.
