GANESH RAGHUNATH GHUGE,ANDHERI EAST V. WARD 42(2)(2), MUMBAI

ITA 5098/MUM/2024

AI Insights

The case revolves around the denial of the concessional tax rate under Section 115BAC of the Income Tax Act to the assessee, Ganesh Raghunath Ghuge, due to the non-filing of Form 10IE by the stipulated deadline. The assessee filed his income tax return for the assessment year 2023-24 opting for the new tax regime but did not initially select this option in the ITR form. After filing a revised return and submitting Form 10IE, the Centralized Processing Center (CPC) in Bengaluru still denied the concessional tax rate. The assessee's appeal to the CIT(A) was unsuccessful, leading to the current appeal before the Tribunal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35516 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 21-11-2024
• Assessment Year: 2023-2024
• Appeal Filed On: 30-09-2024
• Other Referred Cases: ITA No. 25/Asr/2024, ITA No. 354/Pun/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAKOLI GHOSH; DR
• Assessee Lawyers: BHUPESH N EGANDHI; AR
• Keywords: Revised return
• Section: 143(1); 139(1)

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI RAJ KUMAR CHAUHAN, HON’BLE JUDICIAL MEMBER I.T.A. No. 5098/Mum/2024 Assessment Year: 2023-24 Ganesh Raghunath Ghuge, Andheri East 6th Floor, B 602 Bldg No. 7, Bhim Nagar CHS Road No. 7 MIDC Maharashtra - 400093 [PAN: AJVPG9872E] Vs Income Tax Officer, Ward- 42(2)(2), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Bhupesh Negandhi, A/R Revenue by : Ms. Kakoli Ghosh, Sr. D/R सुनवाई की तारीख/Date of Hearing : 21/11/2024 घोषणा की तारीख /Date of Pronouncement: 21/11/2024 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. CIT(A)/Addl./JCIT(A)-3, Delhi, dated 08/08/2024, pertaining to AY 2023-24. 2. The grievance of the assessee reads as under:- “1. The CPC Bangalore has. Erred in denying the benefit of concessional tax rate U/S 115BAC of the income tax act due to non-filing of Form 10IE electronically on or before 30th September, 2023. 2. Kindly stay the demand pending decision in appeal. 3. The assessee craves leave to add or alter any of the ground of appeal on or before the date of hearings.” 3. The sum and substance of the grievance of the assessee is that the revenue authorities erred in denying the benefit of lower tax as per I.T.A. No. 5098/Mum/2024 2 Section 115BAC of the Act only for the reason that Form 10IE was not filed before the due date of filing of return u/s 139(1) of the Act. 4. Briefly stated, the facts of the case are that the assessee filed its return of income on 23/10/2023. The assessee wanted to opt for new tax regime but could not select the option for new regime while filing the ITR Form. The assessee had not claimed any deduction under Chapter VIA, even though he has himself invested in PPF, paid medical insurance premium and also paid housing loan and housing interest. The return was processed by the CPC Bengaluru u/s 143(1) of the Act on 29/12/2023 and the returned income was accepted without granting any deduction under Chapter VIA. The assessee revised his return of income on 30/12/2023 and filed Form 10IE alongwith. Once again, the return was processed u/s 143(1) of the Act by CPC, Bengaluru, but the benefit of lower rate of tax was denied. 5. The assessee filed an appeal before the ld. CIT(A) but did not find any favour from him only because the assessee could not submit Form 10IE. 6. Before us, the ld. Counsel for the assessee stated that, furnishing of Form 10IE is directory in nature and not mandatory and it is a sufficient compliance, if it is filed before the AO before the date of assessment. Referring to Rule 21AG of the Income Tax Rules, 1962, the ld. Counsel for the assessee pointed out that the said Rule does not specifically provide for disallowing the claim of lower rate of tax for late filing of Form 10IE. Per contra, the ld. D/R strongly supported the findings of the ld. AO. I.T.A. No. 5098/Mum/2024 3 7. The undisputed fact is that the original return was revised before the due date of revising the return and, therefore, the original return of income is substituted by a valid revised return meaning thereby that the original return is obliterated for all the purposes under the Act. In our understanding, filing of Form 10IE is not mandatory requirement and only directory in nature and CPC ought to have considered the same. 8. Similar view was taken by the Co-ordinate Bench in ITA No. 25/Asr/2024 and in ITA No. 354/Pun/2024. Considering the facts of the case in totality in light of the decision of the Co-ordinate Benches (supra), we direct the AO to allow the benefit of lower rate of tax as per the provisions of law. 9. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 21st November, 2024 at Mumbai. Sd/- Sd/- (RAJ KUMAR CHAUHAN) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 21/11/2024 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0015ितिलिप अ\u001aेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001c / The Appellant 2. \u0015\u001dथ\u001c / The Respondent 3. संबंिधत आयकर आयु\" / Concerned Pr. CIT 4. आयकर आयु\" ) अपील ( / The CIT(A)- 5. िवभागीय \u0015ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "