ACIT-2(3)(1), MUMBAI V. TATA SONS PVT. LTD., MUMBAI

ITA 5913/MUM/2024

AI Insights

The case involves Tata Sons Pvt. Ltd. (TSPL), which filed an appeal against the intimation under section 143(1) for A.Y. 2023-24, where the benefit of the lower tax rate under section 115BAA was denied without reason. TSPL had previously opted for the new tax regime in A.Y. 2022-23 and continued this option in A.Y. 2023-24. The Revenue challenged the acceptance of this regime due to a discrepancy in the digital signature on Form 10-IC, which was later clarified as a technical glitch. The CIT (A) upheld TSPL's position, and the tribunal agreed, dismissing the Revenue's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 669169 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RITESH MISRA
• Assessee Lawyers: P.J. PARDIWALA AW
• Section: 154

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.5913/Mum/2024 (Assessment Year :2023-24) ACIT-2(3)(1) 552, Aayakar Bhawan M.K.Road Churchgate – 400 020 Vs. Tata Sons Pvt. Ltd., Bombay House 24 Homi Mody Street Mumbai PAN/GIR No.AAACT4060A (Appellant) .. (Respondent) Assessee by Shri P.J. Pardiwala a/w Shri Madhur Agrawal Revenue by Shri Ritesh Misra, CIT DR Date of Hearing 09/06/2025 Date of Pronouncement 26/06/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the Revenue against order dated 30/09/2024 passed by Addl./JCIT-(A)-2, Jaipur in relation to the assessment made u/s.143(1) for the A.Y.2023-24. 2. In the grounds of appeal, the Revenue has raised the following grounds:- 1. \"Whether on the facts and in the circumstances of the case und in the law, Ld.CIT(A) is correct in allowing the computation of the tax liability of the assessee for A. Y. 2023-24 as per new tax regime u/s 115BAA, even when the declaration in the Form 10-IC ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 2 is in name of Mr. Chandrasekaran Natrajan on behalf of the assessee while Form is not digitally signed/ verified by him.” 3. The brief facts qua the issue involved are that assessee, TATA Sons Pvt. Ltd. (TSPL) has filed its return of income for the A.Y.2023-24 on 25/11/2023 declaring total income of Rs.3,09,85,48,16,640/- In the return of income assessee has claimed lower rate of tax u/s.115BAA. The claim for lower rate of tax u/s.115BBA was first updated in the A.Y. 2022-23. This is evident from tax audit report filed on 28/10/2022 wherein, assessee has updated for lower regime of tax u/s.115BBA. Accordingly, Form 10-IC was filed on 21/11/2022 as A.Y. 2022- 23 was the first year. TSPL, post login on the income-tax portal and after selecting the Chairman, Mr. Chandrasekaran Natarajan as principal contact, duly uploaded the Form 10-IC digitally signed by the Chairman and filed on 28/10/2022 for the AY 22-23 as it was the first year of claim u/s 115BAA. From the perusal of the acknowledgement generated on the same date, it is seen that upon uploading of the Form 10-IC it specifies that it has been verified by PAN ABJPC6349J, i.e. PAN of the Chairman. Thus, it is clear that Form 10-IC was verified and signed by the TSPL. A screenshot evidencing the same has also been filed. Post filing of Form 10-IC, email dated 21 November 2022 received from Central Processing Centre (CPC) stating that \"The submitted Form would be sent for further processing. In case there is any notification will be sent to your registered e-mail. Kindly check for email from e-Filing.” ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 3 It has been stated before us that, there has been no further communication from CPC. Accordingly, return of income was filed on 28/11/2022 opting for Section 115BAA was duly accepted. It has been further stated that on 23/02/2024 on the request of ld. JAO hard copy of Form 10-IC was also filed on 21/03/2024. Accordingly, intimation u/s. 143(1) was issued and claimed u/s.115BAA was accepted by the ld. JAO. 4. Now coming to the facts of the relevant assessment year, following chronology of events have been stated before us:- 27th October 2023 Tax Audit filed – option continued for section 115BAA 26th November 2023 Return of income- ITR 6 filed (continuing option for section 115BAA) wherein acknowledgment details of Form 10-IC filed in AY 2022-23 were provided. 6th December 2023 143(1)(a) issued proposing adjustment of disallowance of set of loss of AY 2021-22 (Page no 22 of 30 Impugned intimation u/s.143(1) 2nd January 2024 Response to 143(1)(a) submitted online and before JAO. TSPL made detailed submission as to why adjustments of disallowance of set of loss were not required 20th July 2024 Impugned Intimation u/s 143(1) ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 4 accepting the submission of TSPL and granting set off of loss. However, surprisingly benefit of tax rate of 22% u/s 115BAA not granted by CPC without according any reason for the same. (Page 16 of 30 of Impugned intimation u/s 143(1)) Impugned Intimation received by TSPL vide email on 11 August 2024 12th August 2024 Rectification application u/s 154 filed before the JAO by TSPL seeking rectification of the Impugned Intimation and for taxability @ 22% u/s 115BAA 5. Against the said denial of benefit of lower tax rate @22% u/s.115BBA without any reasons assessee had filed an appeal before the First Appellate Authority. However, in the meantime, a show-cause notice was issued by the ld. AO in response to the application filed u/s.154 dated 12/08/2024 wherein the ld. JAO stated that there is discrepancy in Form 10IC in as much as in the Form \"while the declaration is on the name of Mr. Chandrasekaran Natarajan, on behalf of the assessee company, at the bottom the form has been signed by Mr. Eruch Noshir Kapadia.” Thereafter, TSPL realized that there was a technical glitch in the portal in as much as the name of the person verifying the form is shown as the same person whose name is ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 5 selected as the principal contact on the portal. Inadvertently on 23 February 2024, TSPL submitted a copy of Form 10-IC by downloading the same afresh from the Income tax portal while using the principal contact selected on the portal as Mr. Eruch Kapadia (CFO of TSPL) and therefore, the Form 10IC (which was originally signed and verified by the Chairman), when it was downloaded again, it mentioned the name of Mr. Eruch in the signatory part. Assessee in response to the ld. JAO was as under:- “On the income tax website (https://eportal incometax.gov.in/iec/foservices/#/login) ('e-filing portal\"), a corporate taxpayer is required to register details of all the key persons (to be entered under the profile tab) to use the functionality of the website le to file return of income, forms, file an appeal, rectification, foreign remittance forma etc. Therefore, after login on the e-filing income-lax portal, taxpayers can submit the details of its key person on the portal and register their respective Digital Signatures. In case the taxpayer has to sign any retum/ Fom it has to first select the key person as required under law and designate it as a principal contact as only or person can sign the Form. Hence, depending on the nature of filings to be made, on the e-filing portal, t principal contact is selected. TSPL has registered 3 key persons on the income lax portals. Mr. Chandrasekaran Natarajan (\"Chairman\"), Mr. Eruch Kapadia (\"CFO\") and Mr. Saurabh Agarwal (\"Director) and have registered and linked their DSC for various filings required under the Income Tax Act, 1961 (\"Act\"). 6. All these facts were also explained before the ld. CIT (A) who allowed the claim of the assessee holding that assessee has opted for taxation u/s.115BAA during the A.Y.2022-23 for the first time and had filed the requisite form 10-IC on 21/11/2022 which was applicable for the subsequent assessment years, if not ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 6 withdrawn by the assessee. Admittedly, assessee has not withdrawn the option exercised u/s.115BAA for A.Y. 2023-24 and during the ITR assessee has chosen the new tax regime, therefore the benefit of section 115BAA will continue. After incorporating the relevant part of the ITR and also the intimation u/s.143(1) for A.Y.2022-23, he held that even the ld. AO has computed the tax liability @22% on the basis of Form 10-IC for A.Y.2022-23. 7. We have heard both the parties at length and also perused the relevant facts brought on record. It is an undisputed fact that assessee has opted for new tax regime u/s.115BBA in the A.Y.2022-23 and also filed requisite Form 10-IC on 21/11/2022. While processing the return, CPC / ld. AO has accepted the new tax regime u/s.115BBA. Once Form 10-IC has been filed in the preceding assessment year which is followed in the subsequent assessment years also, then there is no reason to deny any benefit of Section 115BBA. The intimation u/s. 143(1) for A.Y.2023-24 on the ground that Form 10-IC was not filed or which was filed later on the demand of the ld. AO, then it was found that it was signed by other person. It has been clarified that, in the login of e-file income tax portals, tax payers can submit details of its key persons on the portal and register their respective digital signature. The tax payer has to sign any return / form after selecting key person as required under the law and designated as a principal contact as only one person can sign the form. The assessee has registered three key persons on the income tax portal, i.e. i) Mr Chandrasekaran Natarajan ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 7 (\"Chairman\"), ii) Mr Eruch Kapadia (\"CFO\"), and iii) Mr Saurabh Agarwal (\"Director). It has been demonstrated before us that if uploaded form is downloaded today, then all the contents of the downloaded form will remain the same except the name of signatory person will changes automatically and the name and PAN of the key person who at the time of login is the principal contact trying to download the form. This fact has also been accepted by the LD. DR that this is system generated the change that once signatory part of the downloaded Form undergoes a change the \"downloaded acknowledgment\" remains constant with the original verifier's PAN even when the principal contact is changed on the portal to re-download the Form 10-IC. Thus, if the Form 10-IC uploaded on 21/11/2022 is downloaded today under all the three different profiles, i.e., all three key person being taken as principal contact, all the contents of the form will remain the same but the name and PAN of the person who has digitally signed the form undergoes change. Assessee has also submitted both the downloaded from wherein Profile Chairman, Profile CFO, Profile Director has been given and also attached the complete Form 10-IC alongwith acknowledgements downloaded upon changing / modifying the principal contact details on the Income Tax portal. Thus, there was not infirmity and ld. AO has erred in denying the benefit of new tax regime u/s.115BBA. Accordingly, order of the ld. CIT (A) is confirmed and appeal filed by the Revenue is dismissed. ITA No.5913/Mum/2024 Tata Sons Pvt. Ltd. 8 8. In the result, appeal filed by the Revenue is dismissed. Order pronounced on 26th June, 2025. Sd/- (GIRISH AGRAWAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 26/06/2025 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "