Royal Led Equipments Pvt. Ltd. Vs Chief Commissioner of Income Tax (Gujarat High Court)
The Gujarat High Court considered a writ petition challenging the rejection of an application for condonation of delay in filing Form 10-ID required for availing the concessional tax regime under section 115BAB of the Income-tax Act, 1961. The petitioner, a manufacturing company, had filed its return of income for Assessment Year (AY) 2021-22 within the due date under section 139(1) and had opted for the lower tax rate under section 115BAB in its return. However, due to technical difficulties and glitches on the income-tax portal, it was unable to file Form 10-ID within the prescribed time. These difficulties were contemporaneously highlighted, including through public communication, and were later acknowledged by the Central Board of Direct Taxes (CBDT).
While processing the return, the Central Processing Centre initially accepted that the petitioner had opted for section 115BAB. Subsequently, the CBDT issued Circular No. 6 of 2022 condoning delays in filing Form 10-ID for AY 2021-22 in view of widespread portal issues. The petitioner eventually filed Form 10-ID on 12.09.2022. For later years, the benefit was claimed again, but for AY 2023-24 the CPC denied the concessional rate, leading the petitioner to discover that the delay in filing Form 10-ID for AY 2021-22 had not been formally condoned.
