Case Law Details
Annie Joseph Vs ITO (ITAT Cochin)
The Income Tax Appellate Tribunal (ITAT) Cochin heard an appeal by Annie Joseph against the order of the Commissioner of Income Tax (Appeals)-1, Ludhiana, concerning the Assessment Year 2021-22. Joseph had filed her income tax return, declaring an income of Rs. 12,40,090 and opted for the new taxation regime under Section 115BAC of the Income Tax Act, 1961. The Centralized Processing Centre (CPC) processed the return under Section 143(1) but denied the benefit of the new tax regime because of a delay in filing Form 10IE, which is required to opt for this regime. The Commissioner of Income Tax (Appeals) upheld the CPC’s decision, stating that both the return and Form 10IE were not filed within the stipulated time.
During the appeal before the ITAT Cochin, the counsel for Annie Joseph argued that the filing of Form 10IE was a directive and that the form was indeed filed along with the return of income, making it available to the CPC during processing. The counsel cited several decisions from other ITAT benches supporting the view that the requirement for filing Form 10IE is directory. The Senior Departmental Representative (Sr.DR) contended that from Assessment Year 2023-24 onwards, the new tax regime became optional, and prior to that, filing Form 10IE before filing the income tax return was necessary. In this case, Form 10IE was filed on January 10, 2024, after the return filing deadline, leading to the CPC’s correct denial of the new tax regime benefit.
The ITAT Cochin, after hearing both sides and reviewing the case materials, focused on whether the CPC was justified in denying the benefit of the new tax regime. The Tribunal acknowledged that Form 10IE was not submitted before the deadline for filing the income tax return. However, the Tribunal noted that the form was filed on January 10, 2024, which was before the CPC processed the return on March 22, 2022. The ITAT Cochin concluded that the requirement for filing Form 10IE is directory, not mandatory. Since the form was available with the CPC at the time of processing the return, the CPC should have considered it and allowed the benefit of the new tax regime. Consequently, the ITAT Cochin allowed Annie Joseph’s appeal and directed the CPC to amend the intimation by considering Form 10IE.
Appellant was represented by: Smt. Ramya N., CA
FULL TEXT OF THE ORDER OF ITAT COCHIN
This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-1, Ludhiana [CIT(A)] dated 18.02.2025 for Assessment Year (AY) 2021-22.
2. Brief facts of the case are that the appellant is an individual, filed the return of income for AY 2021-22 on 16.02.2022 declaring income of Rs. 12,40,090/- claiming benefit of new taxation regime under the provisions of section 115BAC of the Income Tax Act, 1961 (the Act). The said return of income was processed by CPC u/s. 143(1) of the Act vide intimation 22.03.2022 accepting the returned income, however, denied the benefit of new tax regime under the provisions of section 115BAC of the Act on the ground that there was a delay in filing Form 10IE.
3. Being aggrieved, an appeal was filed before the CIT(A), who held that the since the appellant had failed to file return of income as well as the requisite Form 10IE within the prescribed time limit to avail the benefit of concessional rate u/s. 11 5BAC of the Act, the action of the AO was confirmed.
4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal.
5. The learned counsel for the assessee submits that filing of the prescribed report is only directive and the same was filed along with the return of income and was available at the time of processing of the return of income. The appellant also placed reliance on the following decisions:-
i. Akshay Devendra Birari v. DCIT, ITA No. 782/Pun/2024 dated 05.06.2024
ii. Harbans Singh v. AO, CPC, IA NO. 25/Asr/2024 dated 24.07.2024
iii. Pran Panda & Rama Panda v. ITO, ITA Nos. 1509 & 1510/Kol/2024 dated 04.11.2024
6. The ld. Sr.DR submits that from the A.Y. 2023-24 onwards New Tax Regime was made optional. Once the assessee opts for New Tax Regime, he needs to file Form No.10IE before the filing of the income-tax return. The assessee in the instant case had filed the Form No.10IE only on 10.01.2024. Therefore, the CPC had rightly denied the benefit of New Tax Regime and hence, no interference is called for.
7. I heard the ld. Sr.DR and perused the relevant material on record. The solitary issue that arises for our consideration in the present appeal is whether the CPC was justified in denying the benefit of New Tax Regime. Admittedly, the appellant had failed to submit the prescribed Form No.10IE in order to claim the benefit of New Tax Regime before the due date for filing the return of income. However, the appellant had filed the said form on 10.01.2024 on which date CPC had processed the return of income u/s.143(1)(a) denying the benefit of New Tax Regime. In any event, it is not a mandatory requirement for filing of Form No.10IE but directory in nature. The Form No.10IE was very much available with the CPC and the CPC ought to have considered the same allowing the benefit of New Tax Regime. Therefore, I direct the CPC to amend the intimation by taking into consideration the Form No.10IE, as the same was available with the CPC at the time of processing the return of income. I order accordingly.
8 In the result, the appeal filed by the assessee stands allowed.
Order pronounced in the open court on 30th April, 2025.
Author Bio
