The Pune Bench of the Income Tax Appellate Tribunal has directed the Centralised Processing Centre (CPC) to allow the benefit of filing Income Tax Return (ITR) under the New Income Tax Regime, despite Form 10IE being filed, but after the due date.
The assessee, an individual earning income under the head ‘Salaries’ and from Futures and Options in shares, filed the Return of Income for the relevant assessment year on 31-7-2023 under section 115BAC of the New Tax Regime.
The Central Processing Centre (CPC) processed this return under section 143(1)(a) on 10-1-2024, denying the benefits of the New Tax Regime. The denial was based on the assessee’s failure to submit Form No. 10IE by the prescribed due date of 31-7-2023.
Upon appeal, the Commissioner of Income Tax (Appeals) [CIT(A)] upheld the CPC’s decision, leading the assessee to escalate the matter to the Pune Tribunal.
The Income Tax Appellate Tribunal (ITAT) examined whether the CPC was justified in denying the benefits of the New Tax Regime. It was undisputed that the assessee had not submitted Form No. 10IE by the due date. However, the form was submitted on 10-1-2024, the same day the CPC processed the return.
The case was presided over by Inturi Rama Rao, Accountant Member, and Astha Chandra, Judicial Member.
Shashank Deogadkar represented the respondent.
The Income Tax Appellate Tribunal ruled that filing Form No. 10IE is directory rather than mandatory. Since the form was available to the CPC on the processing date, the CPC should have considered it and allowed the benefits of the New Tax Regime.
Consequently, the Tribunal directed the CPC to amend the intimation by considering Form No. 10IE, thus granting the assessee the benefits of the New Tax Regime.
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