MRF Limited Vs Central Board of Direct Taxes (Madras High Court)
The Madras High Court considered a writ petition challenging the order dated 26.03.2024 rejecting the petitioner’s application under Section 119(2)(b) of the Income-tax Act, 1961 for condonation of delay in filing Form 10-IC, which was required for availing the concessional corporate tax rate under Section 115BAA of the Act.
The petitioner, MRF Limited, engaged in the business of manufacturing tyres, filed its return of income for Assessment Year 2020-21 on 05.02.2021. While filing the return, the petitioner expressly opted for taxation under Section 115BAA by declaring the option in Form 3CD. The petitioner also forewent deductions and allowances as required under Section 115BAA(2), and there was no dispute regarding such compliance. However, the petitioner failed to file Form 10-IC within the prescribed time. According to the petitioner, although the due date was initially 15.02.2021, it had been extended to 30.06.2022 due to the COVID-19 pandemic. The petitioner explained that the tax function was being carried out remotely during the pandemic and that it was under a bona fide impression that Form 10-IC had already been filed. The omission came to light only while filing the return for Assessment Year 2022-23, when the income-tax portal introduced a functionality requiring details of Form 10-IC. The petitioner immediately attempted to file the form, but the portal did not permit filing because of the delay. The petitioner thereafter applied under Section 119(2)(b) seeking condonation of delay.
