Query :
Can we cancel form 10IC files through oversight. We have yet not filed the return. Relevant section 115BAA but we would like to opt for section 115BA.
An opinion :
Second proviso to section 115BA(4) states that where a person exercises option under section 115BAA, the option under section 115BA may be withdrawn. This proviso was introduced by the Taxation Laws (Amendment) Act, 2019. This amendment is made by the said Act consequent to introduction of section 115BAA in the statute. Therefore, the purpose of introduction of second proviso to section 115BA(4) is that if a company opts for section 115BAA (which option was not available to the company at the time when section 115BA was introduced in the statute), then the option made under section 115BA previously would stand withdrawn.
So this proviso should not cause any trouble.
Moreover, a perusal of Form ITR 6 would show that it requires to state whether the assessee has opted for section 115BA / 115BAA / 115BAB. Therefore, for the option to be effective, the option should have not only been exercised by filing the relevant Form but also by making claim in the return.
In the present case, only Form 10IC has been filed. No claim under section 115BAA has been made in the return. This is the first year in which the company wants to opt for section 115BA. Such being the case, it is possible to contend that the assessee can exercise option under section 115BA by filing Form 10IB and stating the same in the return of income.
The fact that it has already filed Form 10IC should not be an issue as no claim is made in the return under section 115BAA
Department might raise an issue. In which case, you may have to litigate