No fault of the assessee in uploading Form No.10-IC on ITBA portal on account of technical error, the assessee could not be deprived of benefit under Section 115BAA: Gujrat High Court
Title: Principal Commissioner Of Income Tax 1 Versus KGY Glass Industries (P) Ltd
Citation: R/TAX APPEAL NO. 722 of 2023
Decided on: 18/10/2023
Coram: Justice Biren Vaishnav and Justice Mauna M. Bhatt
Introduction
The division bench of Gujrat High Court consisting of Justice Biren Vaishnav and Justice Mauna M. Bhatt, held that there was no fault of the assessee as it could not upload Form No.10-IC, on ITBA portal on account of technical error. Therefore, it could not be deprived of benefit particularly when this being the first year for availing such benefits.
Facts of the case
The present appeal has been filed by the Revenue under section 260A of the Income Tax Act, 1961 challenging the order passed by the Income Tax Appellate Tribunal. The assessee is in the business of textile, filed its return of income for the A.Y.2020-21declaring income as NIL. The assessee while filing return of income opted to be taxed as per provisions of Section 115BAA of the Income Tax Act,1961 and the income of assessee was taxed as per Section 115JB of the Act. The assessee was taxed as per section 115JB of the act for the reason that it had not filed Form No.10-IC, on or before the due date of filing of return of income.
Issues before the court
- Whether on facts and in the circumstances of the case and in law, the Ld. Tribunal was justified in allowing the appeal of the Assessee without appreciating the meaning and applicability of section 115BAA of the I.T. Act.?
- Whether on facts and in the circumstances of the case and in law, the Ld. Tribunal was justified in allowing the relief claimed by the Assessee by totally ignoring the provisions of section 115BAA of the Act as well as the Circular No. 06/22 dated 17/03/2022 issued by the CBDT which is mandatory?
- Whether on facts and in the circumstances of the case and in law, the Ld. Tribunal was justified in not appreciating that relief claimed under section 115BAA of the I.T. Act cannot be allowed when the Assessee failed to submit Form 10-IC electronically on or before 30.06.2022 or 3 months from the end of the month in which the Circular is issued?
Court’s observation and analysis
The Gujarat High while giving its judgement made the observation that the assessee could not upload Form No.10-IC on account of technical problem on ITBA portal at the relevant time. Also this was the first year, in which, the assessee was to avail such benefits. Hence, the court opined that there was no fault of the assessee as it could not upload Form No.10-IC, on ITBA portal on account of technical error. Therefore, it could not be deprived of benefit particularly when this being the first year for availing such benefits.
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Written by- Amrita Rout