Nisha Khurana Vs ITO (ITAT Agra)
Late E-Verification Cannot Shut the Door on New Tax Regime: Procedure Must Promote Justice, Not Kill a Legitimate Claim
Return Filed on Time but E-Verified Late
The assessee filed her return of income for AY 2023-24 electronically on 31-07-2023, declaring total income of ₹15,26,039. In the return, she exercised the option to be assessed under the new tax regime u/s 115BAC.
However, the return was e-verified only on 22-09-2023, beyond the 30-day period prescribed under Rule 12 read with CBDT Notification No. 5/2022.
While processing the return u/s 143(1) on 18-12-2023, the CPC treated the effective filing date as the date of e-verification. Consequently, the return was treated as though it had not been filed within the time prescribed u/s 139(1), and the option for the new tax regime was denied. This resulted in a tax demand of ₹93,640.
The assessee filed rectification applications u/s 154 on 28-03-2025 and again on 12-08-2025. Both applications were rejected by the CPC on 20-08-2025.
CIT(A) Refused Relief on a Technical Ground
The assessee challenged the rectification order before the CIT(A). She contended that the return itself had been uploaded within the due date on 31-07-2023 and that only its e-verification was delayed. Therefore, the substantive option already exercised u/s 115BAC should not have been denied.
