Facts of the Case

The assessee, Anil Kumar HUF, filed its return of income for AY 2021–22 and intended to opt for the concessional tax regime under Section 115BAC. However, the prescribed Form 10-IE was not filed within the due date under Section 139(1), i.e., 31st December 2021.

The lower authorities denied the benefit of the new tax regime on the ground of delayed filing of Form 10-IE. It was, however, acknowledged that the assessee faced technical glitches while uploading the form.

 

Issues Involved


  1. Whether delay in filing Form 10-IE due to technical glitches disqualifies the assessee from opting for Section 115BAC?
  2. Whether procedural non-compliance can override substantive statutory entitlement?

Petitioner’s Arguments


  • The assessee had a clear intention to opt for the new tax regime under Section 115BAC.
  • The delay occurred due to technical issues beyond control.
  • Substantive benefit should not be denied due to a procedural lapse.

Respondent’s Arguments


  • Filing of Form 10-IE within the due date prescribed under Section 139(1) is mandatory.
  • Non-compliance with the prescribed timeline renders the assessee ineligible for the new tax regime.

Court Order / Findings


  • The ITAT noted that the CIT(A) itself acknowledged technical glitches faced by the assessee.
  • It was held that:
    • The assessee cannot be denied the statutory option due to technical difficulties.
    • Procedural requirements should not defeat substantive rights.
  • Accordingly:
    • The assessee’s claim was accepted in principle.
    • The matter was restored to CIT(A) for fresh adjudication with proper factual verification.
    • Direction was given to dispose of the matter within three effective opportunities.

Important Clarification


  • Delay in filing Form 10-IE may be condoned where genuine technical difficulties are proven.
  • The ruling emphasizes that substance prevails over procedural technicalities.
  • Tax authorities must adopt a fair and practical approach in such cases

  • State of Punjab vs. Shreyans Industries Ltd. – Technicalities should not override justice.
  • Tribunal rulings allowing relief where portal glitches prevented timely compliance.


    Link to download the order -  https://itat.gov.in/public/files/upload/1735644911-876uZA-1-TO.pdf

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