Opted for New Regime by filing Form No. 10IE but filed ITR under Old Regime – ITAT granted the benefit under old Regime
Pune ITAT in the case of Akshay Nitin Malu v. ITO [ITA No. 1651/PUN/2024, AY 2022-23, [2025] 173 taxmann.com 684 (Pune Tribunal) has granted the benefit under old Regime to the Appellant despite the fact that he has opted for New Regime by filing Form No. 10IE but filed ITR under Old Regime.
This is the situation many taxpayers are facing and this case would be highly helpful in all such cases.
Let us have a Short Overview of the case:
You know how in Bollywood, a character makes one impulsive decision and spends the rest of the movie trying to undo it? That’s exactly what happened in the tax tale of Akshay Nitin Malu.
Akshay, a small-scale textile businessman, found himself at a fork in the road – the new tax regime (flat rates, no deductions) or the old tax regime (fewer frills, but deduction thrills). With pressure building and the filing deadline looming, he hastily chose the new regime by submitting Form 10-IE. Think of it like saying yes to a flashy arranged marriage without knowing the in-laws.
But like any classic hero’s arc, realization struck. Just two days later, he crunched the numbers, compared deductions, and decided: “Nope, the old regime is my true love.” So, he filed his income tax return under the old regime, claiming deductions and additional depreciation – a smart move financially.
But the CPC (Centralized Processing Centre) wasn’t having it. They processed his return under the new regime (thanks to that Form 10-IE) and denied his claims. Cue courtroom battle.
Enter the Pune ITAT Bench. And here’s where the magic happened.
The Tribunal held that while Akshay had initially opted for the new regime, he ultimately filed his return under the old regime before any processing was done. This wasn’t a case of flip-flopping through a revised return (which isn’t allowed in the same year) – it was a clear, timely switch. Hence, he couldn’t be forced to stick with the new regime just because he had earlier filed Form 10-IE.
In taxes, as in life, your final word matters more than a premature choice. Intent may begin the journey, but action seals the deal. If you enjoyed this blend of tax law and drama, stay tuned for more from where we will decode case laws in a way even your non-finance friend can enjoy.
The copy of the order is as under:
