Principal Commissioner of Income Tax, Central-2, Kolkata vs Fastner Commodeal Pvt. Ltd. [ITAT/267/2024]
The petitioner, Revenue argued the order passed by the ITAT Bench B of kolkata on the ground that the respondent failed to comply with the CBDT’s circular No. 6/20222 dated 17.03.2022 regarding condonation of delay in filing form 10IC as per rule 21AE. They also argued that availing of benefits of section 115BAA without filing form 10IC is not justified in law. The filing of form 10IC is being the mandatory provision in the statute.
The respondent, Fastner Commodeal Pvt. Ltd., opted for taxation under Section 115BAA, which provides a concessional tax regime. However, they failed to file Form 10-IC electronically along with the income tax return within the extended timeline as prescribed by the CBDT. The respondent also mentioned that they had certain difficulties in uploading the form.
The Calcutta high court noted the facts and circumstances of the case, including procedural difficulties faced by the assessee due to the pandemic and technical issues on the income tax portal. Consequently, it is held that the filing of Form 10-IC is mandatory for availing the benefit under Section 115BAA. However, the Court recognized that the respondent failure was due to procedural lapses rather than intentional non-compliance. Further held that the CBDT Circular No. 6 of 2022 allowed condonation of delay in filing Form 10-IC under certain conditions. The Court noted that the respondent conduct demonstrated their clear intention to opt for the concessional tax regime.
The respondent is permitted to file Form 10-IC and restored the matter to the AO for reassessment. The AO shall consider the form and assess whether the assessee fulfills all other requisite conditions under Section 115BAA and relief should be granted to the assessee if they meet the statutory requirements.
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