For availing New Tax Regime benefit, filing Form No. 10IE is only directory in nature

ITAT allows benefit of New Tax Regime holding that Form No. 10IE is not mandatory but directory in nature 

In a recent judgment, ITAT Pune has held that that it is not a mandatory requirement for filing of Form No.10IE but directory in nature. ITAT allowed benefit of New Tax Regime where assessee had exercised option u/s 115BAC by filing Form 10E belatedly after prescribed date. 

ABCAUS Case Law Citation:
4308 (2024) (11) abcaus.in ITAT

In the instant case, the assessee had challenged the order passed by the CIT(A)/NFAC in confirming the action of the CPC denying the benefit of New Tax Regime.

The appellant was an individual deriving income under the head “Salaries” and income from Futures and Options in shares. The Return of Income for the AY 2023-24 was filed under the provisions of section 115BAC in New Tax Regime within due date.

The said return of income was processed by CPC Bengaluru vide intimation u/s 143(1)(a) denying the benefit of New Tax Regime on the ground that the appellant had exercised the option by submitting the Form No.10IE after the prescribed due date i.e. before the filing of the income-tax return.

The Tribunal observed that admittedly, the appellant had failed to submit the prescribed Form No.10IE in order 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 later on which date the CPC had processed the return of income u/s 143(1)(a) denying the benefit of New Tax Regime.

The Tribunal held that filing of Form No.10IE is not a mandatory requirement but directory in nature. In the case in hand, the 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.

Accordingly, the Tribunal directed the CPC to amend the intimation by taking into consideration the Form No.10IE, as the same was available with the CPC at the time of processing the return of income.

In another recent case, CPC vide Intimation passed u/s.143(1)(a) of the Act had denied the benefit of New Tax Regime for AY 2023-24 to the assessee on the ground that Form No.10IE was filed belatedly.

The Tribunal observed that the assessee had filed the option for falling under the New Tax Regime by way of filing Form No.10IE on 10.10.2022. It was also noted that the option once exercised and then it is applicable for subsequent years subject to proviso.

The Tribunal observed that admittedly, the due date for A.Y. 2022-23 expired prior to filing of Form No.10IE on 10.10.2022 and therefore assessee could not get the benefit of section 115BAC of the Act for the A.Y. 2022-23. However, for the A.Y. 2023-24 the option furnished in Form No.10IE was much prior to the due date of filing the return u/s.139(1) of the Act for A.Y. 2023-24. Also, the Revenue authorities had not found any discrepancy in the contents of Form No.10IE furnished by the assessee except being belated.

The Tribunal opined that the assessee had made a valid claim for availing the benefit under the New Tax Regime u/s.115BAC of the Act for A.Y. 2023-24 and the same should have been granted by CPC. Accordingly, the appeal was allowed.

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