Mumbai Tribunal grants benefit of new tax regime basis belated Form 10-IE

In the case of Krishna Gopal Diwvedi HUF^[1] (Taxpayer), the issue before the Mumbai Tribunal was whether the Taxpayer would be entitled to the benefit of new tax regime under Section (s.) 115BAC for tax year 2021-22 considering that return of income (ROI) of the Taxpayer was processed under the old regime. 

The Taxpayer filed ROI for tax year 2021-22 claiming benefits of new regime under s.115BAC. However, the benefit was denied by the Tax Authority on the ground that the Taxpayer had filed a belated return as well as belated Form 10-IE on 10 January 2022 for preceding tax year 2020-21 under the old tax regime. 

Tribunal noted that the Taxpayer filed belated ROI for tax year 2020-21 under old regime for the reason that Income Tax e-filing portal did not permit the Taxpayer to choose new regime after the extended due date on 31 December 2021 and Form 10-IE had been filed for that year, although on a belated basis.  In the absence of any other option, the Taxpayer filed ROI under old regime which was also processed and accepted by the Tax Authority^[2] .  Tribunal further observed that on the date of processing of ROI for tax year 2021-22, option exercised for new regime for tax year 2020-21 remained in existence and same was not withdrawn. In this regard, Tribunal referred to Amritsar Tribunal ruling in case of Harbans Singh [ITA No.25/Asr/2024] wherein it was held that the requirement of filing Form 10-IE is directory in nature and not mandatory and it is a sufficient compliance if the said Form is filed before the Tax Authority at the time of assessment. 

Reliance was also placed on Gujarat High Court ruling in the case of KGY Glass Industries^[3]  wherein it was held that if filing of Form 10-IE was not practically possible due to the technical glitch on portal, then in the absence of any fault on the Taxpayer, the Taxpayer cannot be deprived of the benefit of new regime. Tribunal also referred to Kolkata Tribunal ruling in case of Pran Panda^[4]  which also dealt with a similar issue wherein it was held that fulfilment of conditions of S.115BAC is sufficient and even if Form 10-IE is not filed, the benefit should not be denied to the Taxpayer. Reference was also made to Mumbai Tribunal ruling in case of Swingtel Communications Pvt. Ltd.^[5]   which dealt with a similar issue in the context of Form 10-IC. 

Basis above, Tribunal held that the Taxpayer should be entitled for the benefit of new regime for tax year 2021-22 as Form 10-IE filed for preceding tax year 2020-21 was neither withdrawn nor rejected or made invalid but the same remained effective during the assessment proceedings or at the time of passing assessment order for subsequent tax year 2021-22. 

Similar view has also been upheld by Mumbai Tribunal in case of Oceanic Trade Minerals Pvt. Ltd.^[6]  wherein the benefit of concessional tax regime under s.115BAA was granted to the taxpayer for tax year 2021-22 basis the Form 10-IC filed for tax year 2020-21 despite such form being filed belatedly. 

[1]TS-140-ITAT-2025(Mum)
[2]It is not clear from the ruling as to whether ROI of AY 2021-22 was processed under old or new regime. 
[3](2023) 156 taxmann.com18
[4]ITA no.1509 & 1510/Kol/2024 
[5]ITA No.3981/M/2024
[6]TS-212-ITAT-2025(Mum)