Aarti Sachdev Vs ITO (ITAT Delhi)
Belated filing of return of income cannot by itself deprive an assessee of the concessional new tax regime under section 115BAC where Form 10-IE has been filed within time; procedural requirements regarding Form 10-IE and related compliance are directory and delay is condonable.
Summary: The appeal arose from the order dated 18.02.2026 passed under Section 250 of the Income-tax Act, 1961 by the Ld. Addl./JCIT(Appeals)-2, Pune. The assessee’s return was processed under Section 143(1), determining total income of Rs.8,59,770/- instead of Rs.4,96,400/- declared in the return. Applications under Section 154 were rejected. The Ld. Addl./JCIT(Appeals) held that although Form 10IE was filed on 31.07.2024 within the prescribed due date, the return was filed belatedly on 13.01.2025 and therefore the benefit of Section 115BAC was not available. The ITAT noted coordinate bench decisions treating such delays as directory rather than mandatory, including Arun Kumar Sharma, reported in 176 taxmann.com 927 (Del. – Trib.) [2025], and Harbans Singh vs. AO, CPC, reported in [2024] 165 com 146/208 ITD 151 (Amritsar – Trib.). Following the principle stated in those decisions, the Tribunal held that the delay in filing the return of income, while Form 10-IE had actually been filed in time, deserved to be condoned and that the assessee’s claim to be taxed under Section 115BAC deserved to be allowed. The assessee’s appeal was accordingly allowed.
