CPC to Consider Form 10-IE If It Was Available at ITR Processing Time Even If Filed After Due Date | ITAT

Case Details: Akshay Devendra Birari vs. Deputy Commissioner of Income-tax - [2024] 164 taxmann.com 58 (Pune-Trib.)

Judiciary and Counsel Details

• Inturi Rama Rao, Accountant Member & Ms Astha Chandra, Judicial Member
• Shashank Deogadkar for the Respondent.

Facts of the Case

The assessee was an individual deriving income under the head ‘Salaries’ and income from Futures and Options in shares. The Return of Income for the relevant assessment year was filed under the provisions of section 115BAC in the New Tax Regime on 31-7-2023. The said return of income was processed under section 143(1)(a) vide intimation dated 10-1-2024, wherein the benefit of the New Tax Regime was denied.

On appeal, the CIT(A) confirmed the CPC’s action by holding that the appellant submitted Form No. 10IE on 10-1-2024, not before the prescribed due date, 31-7-2023. Aggrieved by the order, an appeal was filed before the Pune Tribunal.

ITAT Held

The Tribunal held that the solitary issue was whether the CPC justified denying the benefit of New Tax Regime. Admittedly, the assessee had failed to submit the prescribed Form No. 10IE in order to claim the benefit of the New Tax Regime before the due date for filing the return of income. However, the assessee had filed the said form on 10-1-2024, on which date the CPC had processed the return of income under section 143(1)(a), denying the benefit of the New Tax Regime.

The tribunal held that filing Form No. 10IE is not a mandatory requirement but a directory in nature. Form No. 10IE was very much available to the CPC, and the CPC ought to have considered it, allowing the benefit of the New Tax Regime.

Therefore, the CPC was directed to amend the intimation by considering Form No. 10IE, which was available to it at the time of processing the return of income.