Big Win for Taxpayers: Late Filing of Form 10IC Won't Deny Lower Tax Rate ITAT Ruling
Mumbai ITAT has ruled that late filing of Form 10IC should not prevent eligible taxpayers from availing the concessional corporate tax rate under Section 115BAA. The order states that filing Form 10IC is a procedural requirement and the intent to opt for the new tax regime is more important.
The Mumbai Income Tax Appellate Tribunal (ITAT) has delivered a major decision (dated October 31, 2025) offering relief to taxpayers opting for the concessional corporate tax rate under Section 115BAA.
The Verdict: Form 10IC is Directory, Not Strictly Mandatory!
The ITAT ruled that a delay in filing Form 10IC cannot be the sole reason to deny a company the benefits of the lower tax regime under Section 115BAA.
The Case: Concessional Rate Denied
A taxpayer opted for the new tax regime (Sec 115BAA) in their ITR filed on February 11, 2021.
However, Form 10IC was filed late.
The CPC initially denied the lower tax rate, and the rejection was upheld by the CIT(A).
ITAT Grants Relief
The ITAT sided with the taxpayer's argument, relying on multiple High Court and Tribunal rulings which state that the requirement to file Form 10IC is directory (procedural), and not strictly mandatory (essential), allowing the delay to be condoned.
Key Takeaway
The ruling confirms that the core intent of opting for the new tax regime holds precedence over a procedural delay in submitting the prescribed form. This provides significant relief and a strong precedent for companies facing similar challenges!
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Krishna Gopal Varshney
An editor at apnokacaKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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Krishna Gopal Varshney
An editor at Myitronline
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.
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