ACIT Vs Magik Kraft Private Limited (ITAT Mumbai)
ITAT Mumbai held that benefit under section 115BAA of the Income Tax Act cannot be denied for inadvertent filing of Form 10-IB in place of Form 10-IC since the same is technical lapse. Accordingly, order of CIT(A) is sustained and appeal of revenue is dismissed.
Facts- The assessee company is engaged in the business of trading and had filed return of income by taking tax rate u/s 115BAA of the Act @ 22%+ surcharge + Education Cess and paid tax of Rs. 1,99,16,614/-. However, the assessee received an intimation order along with demand notice from CPC thereby raising demand of Rs. 77,96,140/- u/s 143(1) of the Act. Against this intimation assessee preferred appeal before CIT(A), who partly allowed the appeal. Against this order of CIT(A) the revenue has filed an appeal and assessee has also preferred cross objection.
Conclusion- Held that assessee has fully complied with the substantive conditions prescribed under section 115BAA of the Income-tax Act, 1961. The inadvertent filing of Form 10-IB in place of Form 10-IC is a purely technical lapse, which has since been duly rectified by filing the correct Form 10-IC electronically and manually before the jurisdictional Assessing Officer in compliance with the directions of the Learned CIT(A). The principle of law, consistently upheld by the Hon’ble Supreme Court, Hon’ble High Courts, and the Coordinate Benches Tribunals, is that the procedural defects should not defeat substantive rights when all eligibility conditions stand satisfied. Further, the CBDT itself, through various circulars, has recognized that such defects in the filing of Form 10-IC are condonable in nature, and taxpayers should not be denied the lawful benefit of the concessional regime merely due to technical or inadvertent errors. It is also significant that the Department has consistently accepted the assessee’s tax position in earlier and subsequent years, thereby reinforcing the principle of consistency in tax administration. In our view, the order of the Learned CIT(A) is reasoned, balanced, and based on settled principles of law, granting the assessee an opportunity to rectify the procedural lapse while safeguarding the interest of the Revenue.
