Mysim Therapeutics Pvt. Ltd. Vs ITO (ITAT Chennai)
Summary: The ITAT allowed the appeal of Mysim Therapeutics Pvt. Ltd. for AY 2022-23 and directed the Assessing Officer to grant the benefit of the concessional corporate tax regime under Section 115BAA of the Income-tax Act, 1961. The assessee had filed its return of income on 19.11.2022, whereas the due date under Section 139(1) was 07.11.2022. Form 10-IC was also ultimately filed after the prescribed due date. Consequently, CPC denied the assessee’s claim for taxation under Section 115BAA. The assessee thereafter filed a rectification application under Section 154, which was rejected, and the denial was subsequently confirmed by the Addl./JCIT(A)-2, Hyderabad.
The assessee explained that this was its first year of business and that it had attempted to file Form 10-IC on 07.11.2022 itself to avail the concessional tax rate. However, the form could not be filed on that date because of a technical glitch, either in the Income-tax portal or the assessee’s computer system. Significantly, the Income-tax portal itself showed 07.11.2022 as the date on which Form 10-IC had been created and saved. The assessee relied upon CBDT Circular No. 6/2022 dated 17.03.2022, under which delay in filing Form 10-IC had been condoned for the preceding assessment year to avoid genuine hardship to domestic companies opting for the new tax regime. ([TaxGuru][1])
