Akshay Devendra Birari v. DCIT [ITA No.782/PUN/2024]
The appellant was an individual showing income under the head “Salaries” and income from Futures and Options in shares. The Return of Income for the A.Y.2023-24 was filed under the provisions of section 115BAC in New Tax Regime on 31.07.2023 declaring income of Rs.40,54,450/-. The said return of income was processed u/s.143(1)(a) vide intimation dated 10.01.2024 assessing the income of Rs.40,54,450/- denying the benefit of New Tax Regime.
Being aggrieved by the above intimation order, an appeal was filed before the CIT(A)/NFAC, who vide impugned order confirmed the action of the CPC by holding that the appellant submitted the Form No.10IE only on 10.01.2024, not before the prescribed due date, i.e. 31.07.2023.
Being aggrieved, the Appellant appealed before the Tribunal.
When the appeal was called on, none appeared on behalf of the appellant despite due service of notice of hearing. After hearing the ld. DR and perusing the material on record, the Tribunal disposed of the appeal ex parte.
The ld. DR submitted that from the A.Y. 2023-24 onwards, New Tax Regime was made optional. Once the assessee opts for the 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 Form No.10IE only on 10.01.2024. Therefore, the CPC had rightly denied the benefit of the New Tax Regime and hence, no interference was called for.
The Hon’ble Tribunal heard the ld. DR and perused the relevant material on record and held that in the present appeal the CPC was justified in denying the benefit of the New Tax Regime. Admittedly, the appellant had failed to submit the prescribed Form No.10IE 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 the CPC had processed the return of income u/s.143(1)(a) denying the benefit of New Tax Regime.
The Hon’ble Tribunal further held that in any event, it is not a mandatory requirement for filing Form No.10IE but directory in nature. 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, the Tribunal directed the CPC to amend the intimation by taking into consideration Form No.10IE, as the same was available with the CPC at the time of processing the return of income.
The appeal filed by the assessee was partly allowed.
Akshay Devendra Birari vs DCIT [ITA No.782/PUN/2024]
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