No Need to Submit 10IC Form Before ITR 6 If Companies Opt 115BAA

Inside the Income-tax act, 1961 section 115BAA was introduced via Taxation Laws Amendment Act 2019, so as to make the tax laws easier under which the companies were provided with the option to pay the tax at diminished rates. Under section 115BAA (5), after this option came into force would then be applied to the next assessment years.

The firm is needed to submit a 10IC Form prior to furnishing the ITR mentioning the purpose to choose the filed tax beneath the easier tax regime for the subsequent time.

There is also a row in form ITR 6 asking the company whether the taxpayer chooses taxation u/s 115BA/115BAA/115AB.

The same has been seen in that various firms have not submitted Form 10-IC or submitted after the filing of their ITRs. both the case rendered with non-compliance with provisions, that might impose the company to furnish the tax under the normal rates which cause struggles.

Various firms are obtaining the intimation u/s 143(1) of the Income Tax Act, 1961 who were unable to furnish the form needed them to furnish the tax under the basic rates.

We request the tax authorities u/s 119 of ITA to permit companies to do away with/ condone late filing of Form 10-IC.

Mention Below is the Justification

• Choosing section 115BAA (5) in a row in ITR 6 via company comes under the interest through the company that it is choosing to furnish the tax under the easier tax regime.
• Because of covid, there was a lack of communication among the team members.
• Under the component of performing the simplified business, the submission of the number of forms must be lessened and the forms must be comprehensive rather than multiple forms.
• In ITR-6 there were no columns urging the submission date of Form 10-IC that diminish from having any errors.
• In Case Of Individual/HUF opting for new taxation scheme under Section 115 BAC: During furnishing the ITR as an essential part the portal is requesting for Acknowledgement No. Of 10-IE, the taxpayer would not carry on the process of furnishing the ITR excluding furnishing that, so if there would be non-compliance in furnishing the Form 10-IE, the taxpayer shall get know that and would submit that.
• If the portal urges us for that in the assessment year 2020-21 towards the concern of the company to file Form 10-IC then there is no option of non-filing of the Form 10-IC that causes issues to the revenue and the companies.
• Form 10-IC is needed to get submitted during the time of furnishing of the return for the firms choosing the easier tax regime through pop. No Acknowledgement No Of 10-IC has been questioned that cause various firms opting for Section 115 BAA for the first time in A.Y 2021-2022 causing a lot of chances to Non-Filing Of Form 10-IC, that lastly causes the issues to the revenue and the companies.
• Non-submission of 10-IC is a procedural mistake on part of the company, excluding revenue loss.
• The income tax portal does not accept submitting 10-IC for A.Y 20-21 so the firms would not submit it as a late filing. Various firms would need to have these errors.

Some of the Related Case Laws for the Concern are Mentioned As

• Honourable Supreme Court vide their order in suo-moto writ petition (c) no. 3/2020 on 23-03-2020 pointed that in these proceedings a period of limitation with no inclusion of limitation beneath the basic law or special laws if that is waved off or will not get prolonged w.e.f 15 March 2020 till further order/s.
• Hon’ble Supreme Court in the case of Ramlal, Motilal and Chhotelal v. Rewa Coalfield Ltd AIR 1962 SC 361, carried that the state authorities must not ask appeals related to technicity if the citizens have a lawful right, which gets refused to them simply on a technical basis.
• In the case of Smt. Sneh Lata Jain v. CIT [2004] 140 Taxman 156, Hon’ble J&K High Court held that “when the substantive law confers a benefit on the assessee under a statute, it cannot be taken away by the adjudicatory authority on mere technicalities.”
• Mumbai Bench of ITAT in Chicago Pneumatic (India) Ltd. v. Dy. CIT [2007] 15 SOT 252, seen that council are forced to calculate the correct income and only for the lapse related to technical procedure the taxpayers must not be forced to furnish more taxes than what is left from him.