Indian Semless Metal Tube Pagardar Nokranchi Sah Patsanstha Maryadit Vs. ITO, Ward – 14 (5), Pune

Parties Involved

Facts Summary

The assessee, a credit co-operative society, filed its return of income on 09.09.2024 declaring total taxable income at Nil after claiming a deduction under section 80P of the Income Tax Act, 1961. The assessee had filed Form 10-IF along with the return. The Central Processing Centre (CPC) processed the return under section 143(1) of the Act on 19.12.2025 and determined the total income of the assessee at Rs.1,43,45,900/- by disallowing the deduction claimed under section 80P of the Act amounting to Rs.1,43,45,900/-. The rectification application filed by the assessee was dismissed by the CPC. The assessee preferred an appeal before the Additional Commissioner of Income Tax (Appeals) who dismissed the appeal on the ground that the assessee had filed Form 10-IF on 09.09.2024 to exercise the option for the new tax regime for assessment year 2024-25. The assessee claimed that Form 10-IF was filed mistakenly and without any conscious intention to opt for the concessional tax regime under section 115BAD of the Act.…

Legal Issues

• 1. Whether the Ld. CPC & CIT(A) erred in not allowing the claim of 80P deduction and taxing the entire income at the tax rate prescribed under section 115BAD of the IT Act.
• 2. Whether the Ld. CIT(A) ought to have accepted the prayer of the assessee that the Form 10IF was inadvertently filed and while filing the ITR the benefit of the tax rate prescribed under section 115BAD was not claimed.
• 3. Whether the Ld. CPC & Ld. CIT(A) ought to have considered the fact that, even though the option under section 115BAD was exercised by filing Form 10IF, the claim of 80P deduction was made while filing ITR due to which the option so exercised became invalid.
• 4. Whether the Ld. CIT(A) ought not to have upheld the action by CPC which was hyper technical and rigid and ought to have accepted substance over form.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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