Welkin Industries Private Limited Vs ITO (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the appeal of the assessee and held that the benefit of the concessional tax regime under Section 115BAA of the Income-tax Act, 1961 could not be denied merely because Form 10-IC was filed with a delay of 22 days. The assessee had filed its return of income for AY 2022-23 under Section 139(4) on 20.12.2022 and had opted for the concessional corporate tax rate of 22% under Section 115BAA. Form 10-IC, prescribed under Rule 21AE(1), was e-filed on 29.11.2022. While processing the return under Section 143(1), the Central Processing Centre (CPC) denied the concessional rate and applied the normal rate of tax on the ground that Form 10-IC was not filed within the prescribed due date and no condonation had been obtained. The CIT(A) also dismissed the assessee’s appeal.
Before the Tribunal, the assessee contended that Form 10-IC had been filed before the processing of the return and that the delay constituted only a procedural lapse. The assessee argued that its intention to opt for the concessional regime was clearly reflected in the return of income and tax computation. It was also submitted that the portal did not provide any option for seeking condonation of delay in filing Form 10-IC. Reliance was placed on various decisions of Tribunals, the Allahabad High Court, and the Supreme Court.
