Amit Arora Vs ITO (ITAT Amritsar)
Summary: The Amritsar Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal for Assessment Year 2021-22 concerning denial of the concessional tax regime under section 115BAC of the Income-tax Act, 1961 merely because Form No. 10-IE was filed nine days after the prescribed due date. The assessee had originally filed the return under the old tax regime and claimed deductions under Chapter VI-A. Subsequently, he opted for taxation under section 115BAC and filed a revised return. The applicable compliance date stood extended to 15.03.2022, whereas Form No. 10-IE was furnished on 24.03.2022. According to the assessee, the short delay occurred because of technical glitches and difficulties in the income-tax e-filing portal, and the prescribed form was filed as soon as the relevant utility became functional. The assessee also relied upon CBDT circulars recognising electronic-filing difficulties and extending statutory timelines.
While processing the return under section 143(1), the CPC denied the benefit of the lower tax rate under section 115BAC because Form No. 10-IE had not been furnished within the prescribed time. The CIT(A) confirmed the CPC’s action and held that for AY 2021-22 the assessee was required to exercise the option by filing the prescribed form within the stipulated period. Before the Tribunal, the assessee argued that there had been substantial compliance, the delay was merely nine days, the form and revised return were ultimately available with the Department, and a minor procedural delay attributable to technical difficulties should not defeat the substantive benefit. The Revenue supported the orders of the lower authorities, although it could not effectively controvert the assessee’s factual submission regarding technical glitches in the e-filing portal.
