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Form 10-IB Filing with condonation after Form 10-IC Filed

03 May 2022

Pvt Ltd Co. incorporated in Oct-2018

A.Y. 2019-20: Return filed on 30-Sep-2019 (115BA) - No Form 10-IB was filed. Return processed by CPC as 115BA

A.Y. 2020-21: Return filed on 13-Dec-2020 (115BA) - No Form 10-IB filed yet. Return processed by CPC @ 30% Tax Rate, not considering 115BA

A.Y. 2021-22: Return filed on 31-Jan-2022 (115BAA) - Form 10-IC filed on 31-Jan-2022. Return processing pending.

Question: For A.Y.2020-21:

Should Form 10-IB be filed even after filing Form 10-IC? so as to claim benefit for A.Y.2020-21 and file rectification-reprocess the return????

Motive is to claim benefit of 115BA for A.Y. 2020-21.

Please enlighten in this regards.

Thanking You.

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3 Replies

Kev Men (756 Points)
Replied 03 May 2022

As per section 115BA(4), inorder to exercise the option u/s 115BA, the prescribed conditions/form have to be submitted before the due date of 139(1). For the AY 2020-21, form 10IB has not been submitted before the due date, so uploading the same now and rectifying/reprocessing the return won't serve the purpose.

The fact that benefit of section 115BAA is taken in AY 2021-22 is taken is of little relevance as it is allowed as per 2nd proviso to section 115BA(4) which states that the person can opt u/s 115BAA in subsequent year even if earlier opted u/s 115BA.

So to summarise, it is unlikely that you will get the benefit u/s 115BA for AY 2020-21 as the relevant form has not been filed before due date.

Dinesh Dubariya (CA) (32 Points)
Replied 10 January 2023

Will filing Appeal and requesting condonation for delay in filing of Form 10-IB by supporting few case law work? Procedural lapse shall not harm the assessee.

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 11 January 2023

Originally posted by : Dinesh Dubariya
	Will filing Appeal and requesting condonation for delay in filing of Form 10-IB by supporting few case law work? Procedural lapse shall not harm the assessee.

Generally condonation granted when there is specific provision in this regard. Unfortunately, no such relief u/s 115BA. However just to take a chance, you can file Form 10IB now AY 2020-21 as well as for AY 2019-20 (if window to file available) and file request to reprocess the return. Even though your income for AY 2019-20 processed by CPC with lower rate as prescribed u/s 115BA, same can be taken up by department during assessment proceedings for applying higher income tax rate since Form 10IB also not filed for that period.

Regarding filing appeal, please note that language of section is pretty clear and hence, it is unlikely that appeal would result in favourable outcome.

Regards,

Manoj