Delay in Filing Form 10-IC Cannot Deny 115BAA Benefit – ITAT Mumbai Gives Big Relief to Companies
The concessional tax regime under section 115BAA allows domestic companies to pay tax at a lower rate, but the option must be exercised in the prescribed manner by filing Form 10-IC within the due date. In many cases, companies filed the return opting for section 115BAA but failed to upload Form 10-IC in time, and the department denied the concessional rate on technical grounds.
A very important decision of the ITAT Mumbai Bench in Getinge Medical India Pvt Ltd (2026) has now clarified that delay in filing Form 10-IC is only a procedural lapse and cannot deny the benefit if the option was exercised in return of income.
This ruling gives major relief to companies facing similar disputes.
Facts of the Case
The assessee company filed its return of income and opted for taxation under section 115BAA.
However, Form 10-IC was filed late.
During assessment, the Assessing Officer ignored the option and taxed the company at the normal rate instead of concessional rate.
The matter ultimately reached the Tribunal.
The dispute was whether delay in filing Form 10-IC makes the option invalid.
(Page 1–2 of the order)
Requirement of Law
Section 115BAA(5) provides that the option for concessional tax must be exercised:
on or before due date of return
in prescribed manner
by filing Form 10-IC
However, the law does not clearly state that delay will automatically cancel the option.
(Page 12–13 of the order)
Tribunal’s Key Observation
The Tribunal noted an important distinction between:
Substantive condition → choosing the concessional regime
Procedural condition → filing Form 10-IC
If the company has exercised the option in return of income,
then late filing of form is only a procedural defect.
(Page 14 of the order)
The Tribunal held that procedural requirement should not defeat a substantive right when there is no loss to revenue.
Circular No. 6/2022 – Important Support
CBDT Circular No. 6/2022 clarified that delay in filing Form 10-IC can be condoned where:
option is exercised in return
return filed within time
company follows 115BAA provisions
This circular shows that filing Form 10-IC is procedural.
(Page 13–14 of the order)
Effect of COVID Extension of Time
The Tribunal also considered that due dates were extended due to COVID-19,
and many procedural delays occurred during that period.
Therefore, strict interpretation should not be applied for technical lapse.
(Page 9–10 of the order)
Important Finding of ITAT
The Tribunal clearly held:
– Option exercised in return is valid
– Delay in Form 10-IC is procedural
– No prejudice to revenue
– Benefit of section 115BAA cannot be denied
(Page 16–17 of the order)
Important Legal Principle Laid Down
The decision reiterates an important rule of tax law:
Procedural requirements cannot override substantive entitlement.
If the assessee is otherwise eligible,
technical delay should not result in higher tax liability.
Practical Impact of the Decision
This ruling is very important for companies where:
Form 10-IC filed late
CPC denied 115BAA rate
Assessment done at normal rate
Appeal pending before CIT(A) / ITAT
Rectification rejected
Such cases can now rely on this decision.
Example
Company files return opting 115BAA
Form 10-IC filed after due date
Earlier → taxed at 30%
Now → can claim 22% tax rate
Huge tax saving possible.
Conclusion
The ITAT Mumbai decision is a major relief for taxpayers opting for concessional tax regime under section 115BAA.
It confirms that late filing of Form 10-IC is a technical lapse and cannot take away the right to concessional taxation if the option was exercised in the return of income.
This ruling will help many companies who lost the benefit only due to procedural delay and will reduce unnecessary litigation.
The copy of the order is as under:
