Case Law Details
Akshay Devendra Birari Vs DCIT (ITAT Pune)
The case of Akshay Devendra Birari Vs DCIT (ITAT Pune) revolves around the applicability of the new income tax regime introduced in A.Y. 2023-24. Mr. Birari, an individual taxpayer, challenged the denial of benefits under the new tax regime due to procedural lapses regarding Form No.10IE.
Mr. Birari filed his income tax return for A.Y. 2023-24 under section 115BAC, opting for the new tax regime. However, the Central Processing Center (CPC) denied the benefit as he submitted Form No.10IE after the prescribed due date of 31st July 2023. The issue before the Income Tax Appellate Tribunal (ITAT) Pune was whether the CPC’s denial was justified.
The ITAT Pune noted that while Form No.10IE is required for availing benefits under the new tax regime, its submission deadline is directory, not mandatory. Despite Mr. Birari submitting the form on 10th January 2024, after the processing of his return by CPC, the tribunal found that CPC should have considered the form when processing his return. The ITAT directed CPC to amend its intimation to include Form No.10IE and allow the benefits of the new tax regime accordingly.
In conclusion, the ITAT Pune’s decision in Akshay Devendra Birari Vs DCIT clarifies that while timely submission of Form No.10IE is recommended, its procedural delay should not automatically deny taxpayers the benefits of the new income tax regime.
FULL TEXT OF THE ORDER OF ITAT PUNE
This is an appeal filed by the assessee directed against the order of Addl./JCIT(A)-2, Chennai dated 14.03.2024 for the assessment year 2023-24.
2. Briefly, the facts of the case are that the appellant is an individual deriving income under the head “Salaries” and income from Futures and Options in shares. The Return of Income for the A.Y.2023-24 was filed under the provisions of section 115BAC in New Tax Regime on 31.07.2023 declaring income of Rs.40,54,450/-. The said return of income was processed u/s.143(1)(a) vide intimation dated 10.01.2024 assessing the income of Rs.40,54,450/- denying the benefit of New Tax Regime.
3. Being aggrieved by the above intimation order, an appeal was filed before the CIT(A)/NFAC who vide impugned order confirmed the action of the CPC by holding that the appellant submitted the Form No.10IE only on 10.01.2024 not before the prescribed due date, i.e. 31.07.2023.
4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
5. When the appeal was called on, none appeared on behalf of the appellant despite due service of notice of hearing. After hearing the ld. DR and perusing the material on record, we proceed to dispose of the appeal ex parte qua the appellant.
6. The ld. Sr. DR submits that from the A.Y. 2023-24 onwards New Tax Regime was made optional. Once the assessee opts for New Tax Regime, he needs to file Form No.10IE before the filing of the income-tax return. The assessee in the instant case had filed the Form No.10IE only on 10.01.2024. Therefore, the CPC had rightly denied the benefit of New Tax Regime and hence, no interference is called for.
7. We heard the ld. Sr. DR and perused the relevant material on record. The solitary issue that arises for our consideration in the present appeal is whether the CPC was justified in denying the benefit of New Tax Regime. Admittedly, the appellant had failed to submit the prescribed Form No.10IE in order to claim the benefit of New Tax Regime before the due date for filing the return of income. However, the appellant had filed the said form on 10.01.2024 on which date the CPC had processed the return of income u/s.143(1)(a) denying the benefit of New Tax Regime. In any event, it is not a mandatory requirement for filing of Form No.10IE but directory in nature. The Form No.10IE was very much available with the CPC and the CPC ought to have considered the same allowing the benefit of New Tax Regime. Therefore, we direct the CPC to amend the intimation by taking into consideration the Form No.10IE, as the same was available with the CPC at the time of processing the return of income. We order accordingly.
8. In the result, the appeal filed by the assessee is partly allowed.
Order pronounced on this 05th day of June, 2024.
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