Rajiv Madhaorao Khobragade Vs ITO (ITAT Nagpur)
E-Verification Delay Cannot Derail New Tax Regime Benefit — ITAT Nagpur Grants Relief u/s 115BAC Despite Procedural Lapse
Facts of the Case
The assessee, an individual, filed his return of income for AY 2023-24, declaring a total income of ₹21,98,660. In the return, he opted for taxation under the new tax regime provided u/s 115BAC.
The return was uploaded on the Income Tax portal before the statutory due date of 31.07.2023. The order records that it was uploaded on 27.07.2023, bearing acknowledgment no. 726415070270723. At another place, the Tribunal refers to the relevant information being furnished on 29.07.2023. Either way, it was undisputed that the return and the option for the new tax regime were furnished before the due date u/s 139(1).
However, the assessee did not complete the prescribed e-verification within 30 days of uploading the return. The return was ultimately e-verified on 27.09.2023.
While processing the return u/s 143(1), the CPC treated the delay in e-verification as fatal and denied the assessee the benefit of the new tax regime u/s 115BAC. Consequently, the assessee’s tax liability was computed without applying the concessional regime selected in the return.
The assessee challenged the adjustment before the Additional/Joint CIT(A), Madurai, contending that the delay had occurred because of technical glitches on the Income Tax portal. The CIT(A), however, upheld the CPC’s action.
