Delayed Form 10-IC Can Be Considered for Section 115BAA Benefit: ITAT Mumbai

JSW Minerals Trading Pvt. Ltd. Vs ITO (ITAT Mumbai)

Summary: ITAT Mumbai restored JSW Minerals Trading Pvt. Ltd.’s claim for concessional taxation under Section 115BAA to the Assessing Officer for fresh consideration. The assessee filed its AY 2021-22 return on 11.03.2022, opted for Section 115BAA, paid tax at 22% plus applicable surcharge and cess, and had also specified Section 115BAA in clause 8(a) of Form 3CA filed on 11.02.2022. CPC nevertheless computed tax under Section 115JB because Form 10-IC had been filed late. The Tribunal found that the assessee had acted bona fide and that its return, tax payment and Form 3CA clearly demonstrated its intention to exercise the Section 115BAA option. It held that there had been substantial compliance and referred to the Supreme Court’s discussion of the doctrine of substantial compliance in Commissioner of Customs Vs. Dilip Kumar. The Tribunal also considered PCIT Vs KGY Glass Industries (P) Ltd, Kumar Medicare Pvt. Ltd., Fastner Commodeal Private Limited and Mahalaxmi Asphalt Private Limited on procedural lapses relating to Form 10-IC and substantive tax benefits. It further noted the assessee’s contention that its case satisfied CBDT Circular No. 19/2023 because the return had been filed within the Section 139(1) due date and Form 10-IC had subsequently been filed electronically on 19.10.2022. Accordingly, the Tribunal directed the AO to take Form 10-IC on record, consider it with the CBDT Circular and the return, verify the claim, and decide whether the assessee was entitled to Section 115BAA taxation for AY 2021-22 after providing an opportunity of hearing. The appeal was allowed for statistical purposes.