Lower tax rate u/s 115BAA can’t be availed if Form 10-IC wasn’t filed by extended deadline: ITAT
One of the condition for claiming the benefit of new tax regime U/s 15BAA is that the taxpayer is required to file Form No. 10IAC before the due date of filing income tax return.
Recently, ITAT Mumbai has held that the Assessee co. cannot avail lower tax rate u/s 115BAA for AY 2020-21 as Form No.10-IC was not filed even by the extended deadline of 31-3-2021
The case detail is as under:
Bholanath Precision Engineering (P.) Ltd.
 145 taxmann.com 180 (Mumbai – Trib.)
The key observation of the ITAT was as under:
- Where assessee-company had not filed Form No. 10-IC for Assessment Year 2020-21 even by the extended deadline of 31.03.2021 available under section 3(1)(b) of Taxation and Other Laws (Relaxations and Amendment of Certain Provisions) Act, 2020, company cannot avail the benefit of lower tax rate u/s 115BAA for AY 2020-21 .
- The decision in Suminter India Organics (P.) Ltd. v. Deputy Commissioner of Income-tax  140 taxmann.com591 (Mumbai – Trib.) would not come to the rescue of assessee-company as assessee-company had not filed Form No.10-IC at while in that case the coordinate bench of the Tribunal held that the time permitted for filing Form 10-IC by virtue of section 3(1)(b) of Taxation and Other Laws (Relaxations and Amendment of Certain Provisions) Act, 2020, must be treated as 31-3-2021, even as the time permitted for filing the income tax return under aforesaid section, in light of the 3rd proviso to section 3(1) of said Act and read with subsequent notification, was only up to 15-2-2021.
- However, assessee can be allowed benefit of lower rate of 25% (instead of 30%) as charged by AO as per the Finance Act, 2019 if the total turnover or the gross receipt in the previous year 2016-17 does not exceed Rs. 250 crore, the rate of income tax shall be 25% of the total income and matter remanded to AO for necessary verification with direction to compute tax liability by applying the rate of tax as per the applicable provisions of law.