Form 10-IC Exercised for Earlier Year Validates Concessional Tax Benefit Under Section 115BAA for Subsequent Years

By | September 7, 2026
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Form 10-IC Exercised for Earlier Year Validates Concessional Tax Benefit Under Section 115BAA for Subsequent Years
Issue
Whether an option under Section 115BAA(5) once exercised by filing Form No. 10-IC for Assessment Year 2023-24 automatically applies to the subsequent Assessment Year 2024-25, thereby entitling the assessee to the concessional tax regime.
Facts
  • The assessee-company opted for the concessional tax regime under Section 115BAA of the Income-tax Act, 1961.
  • The assessee filed Form No. 10-IC on December 28, 2023, for Assessment Year 2023-24.
  • For the relevant Assessment Year 2024-25, the Central Processing Centre (CPC) denied the benefit of the concessional tax rate while processing the return under Section 143(1).
  • The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the denial of the benefit by the CPC.
  • The assessee appealed against the order of the CIT(A), contending that Form No. 10-IC once filed holds good for subsequent assessment years.
Decision
  • Irrevocability of Option: Held that the option exercised under Section 115BAA(5) is to be exercised once and cannot be subsequently withdrawn.
  • Applicability to Future Years: Held that the option once validly exercised applies automatically to all subsequent assessment years.
  • Validity of Form No. 10-IC: Held that since the assessee undisputedly filed Form No. 10-IC on December 28, 2023, the same holds field for Assessment Year 2024-25 as well.
  • Final Ruling: The impugned order denying the benefit was set aside, and the appeal was decided in favor of the assessee [Paras 4.3 and 4.4].
Key Takeaways
  • One-Time Exercise Requirement: Taxpayers opting for Section 115BAA (or corresponding Section 200 of the Income-tax Act, 2025) are not required to file Form No. 10-IC afresh for every subsequent assessment year.
  • Binding Mechanism: Once Form No. 10-IC is validly submitted for any assessment year, the concessional rate regime remains active and binding for subsequent assessment years unless specifically disqualified under statutory conditions.
  • CPC Adjustment Overruled: Denial of concessional tax rates by the CPC during Section 143(1) processing on the ground of non-filing of Form 10-IC for a subsequent year—when already on record for a previous year—is unsustainable in law.
IN THE ITAT INDORE BENCH
Zenith Drugs Ltd.
v.
Income-tax Officer
Paresh M. Joshi, Judicial Member
and Arvind Soni, Accountant Member
IT Appeal No.623 (Ind) of 2025
[Assessment year 2024-25]
AUGUST  18, 2026
Rajesh Mehta and Apurva Mehta, CAs for the Appellant. Binay Kumar Rai, Sr. DR for the Respondent.
ORDER
Paresh M. Joshi, Judicial Member.- This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961, [herein after referred to as the Act for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order bearing Number :-ITBA/APL/S/250/2025-26/1076452108(1) dated 26.05.2025 passed by the Ld. CIT(A) u/s 250 of the Act which is hereinafter referred as the “Impugned Order”. The Relevant Assessment Year is 2024-25 and the corresponding Previous Period is from 01/04/2023 to 31/03/2024.
2. FACTUAL MATRIX
2.1 That as & by way of an Intimation Order passed u/s 143(1) of the Act, the Assessee’s claim u/s 115BAA of the Act was not considered despite the same was claimed in the Income Tax Return filed on 15.11.2024. In the Income Tax Return total Income was at Rs 13,90,80,470/- the Tax liability as provided by Tax payer was at Rs 3,52,30,284/- however the same was computed at Rs 4,89,14,776/-. Net Taxable amount was at Rs 1,15,38,490/-. That the aforesaid Intimation Order bears Demand Reference No:- 2024202437346455423C & that the same is dated 22.01.2025 which is hereinafter referred to as the “Impugned Intimation Order” for sake of brevity [Page 31 of Appeal Memo].
2.2 In the ITR total Income is at Rs 13,99,80,470/- & a refund of Rs 39,09,230/- was claimed as total Taxes paid were more than what was coming at the time of filing ROI [Page No. 7 of the Paper Book]. In the ITR [Page No. 8 of the Paper Book] option u/s 115BAA was exercised at (e) “the filing status”. ROI is dated 15.11.2024. In Form 3CD [Page No. 10 of the Paper Book] at Serial No:-8(a) the Assessee too has opted for Taxation u/s 115BAA. The form No:- 10-IC dated 28.12.2023 for claiming benefit u/s 115BAA is at Page No. 5 of the Paper Book. On Page No. 6 of the Paper Book Form 10-IC Para 6 states that “I understand that the option under subsection (5) of Section 115BAA once exercised for any Previous Year cannot be subsequently withdrawn for the same or any other Previous Year”.
2.3 That the Assessee being Aggrieved by the aforesaid “Impugned Assessment Order” prefers the first Appeal u/s 246A of the Act before the Ld CIT(A) who by the “Impugned Order” has dismissed the first appeal of the Assessee on the grounds & the reasons specified therein. The core grounds & the reasons for the dismissal of the 1st appeal was as under: –
5. Decision
“5.1 On Grounds of Appeal Nos. 1 to 4:- Upon perusal of records, it is found that Form 10 IC was filed late on 28.12.2023 for the Assessment Year 2023-24. Section 115BAA of the Income Tax Act, 1961 offers a reduced tax rate for domestic companies subject to the conditions as per Rule 21AE (1) of the Income Tax Rules which allows a domestic company to benefit from lower tax rates by filing Form 10 IC. Form 10 IC must be submitted by the ‘due date’ for filing the company’s return for the previous year. If a company files form 10 IC after the due date, the option under Section 115BAA will be treated as not exercised. Hence, the company will not be eligible for the concessional tax rate for that assessment year. In order to opt for concessional tax regime under Section 115BAA in the subsequent year, the appellant has to exercise the option afresh in the subsequent year by filing Form 10 IC on or before the due date of filing of return of income under Section 139(1) of the Act.”
“5.2 In the present case, Form 10 IC was filed late on 28.12.2023 for the Assessment Year 2023-24 which was not as per the provisions of section 115BAA to claim concessional tax rate. In order to opt for concessional tax regime under Section 115BAA for Assessment Year 2024-25, the appellant had to exercise the option afresh in the Assessment Year 2024-25 by filing Form 10IC on or before the due date of filing of return of income under Section 139(1) which the appellant has not admittedly done. Therefore, the appellant is not eligible for concessional tax rate u/s 115BAA of the Act for the Assessment Year under consideration.”
“5.3 The appellant has placed reliance on the judgement of the Hon’ble Supreme Court in Dilip Kumar & Co. [(2018) 9 SCC] and claimed that when mandatory and directory conditions are clubbed, fulfilling the former is sufficient. Further, the appellant has relied upon CBDT Circular No. 19/2023 dated 23.10.2023, which condoned late filing of Form 10-IC in genuine cases.
The judgement of the Hon’ble Supreme Court and CBDT Circular are not applicable in the present case as no Form 10IC has been filed by the appellant for the year under reference.”
“5.4 Further, the appellant has placed reliance on the judgement of the Hon’ble ITAT in the case of JSW Minerals Trading Pvt. Ltd. In that case, the Assessment Year involved was 2020-21 which was the very first Assessment Year and due to the fault on the part of the System, the assessee had not filed the Form along with the return of income. But in the present case, the assessment year is 2024-25 and there was no fault in the system and the appellant could have filed Form 10IC for the assessment year 2024-25 before the due date of filing of return of income. Form 10 IC already filed for the assessment year 2023-24 was late and the appellant was considered as not eligible for concessional tax rate u/s 115BAA on the basis of that Form 10IC filed on 28-12-2023.” “5.5 In view of the foregoing, I am of the considered view that the assessee didn’t validly exercise the option under Section 115BAA of the Act for the assessment year 2024-25. Accordingly, the appeal is dismissed.”
“6. In the result, the appeal is dismissed.”
2.4 That the Assessee being aggrieved by the aforesaid “Impugned Order” has preferred the Instant Second Appeal before us & has raised the following grounds of Appeal in the Form No: -36 against the Impugned Order which are as under: -” 1. On the facts and in the circumstances of the case and in law, the Ld. Joint Commissioner of Income Tax (Appeals), Panchkula [‘the Ld. Jt. CIT(A)’] has erred in confirming the action of the Ld. Assessing Officer, Centralized Processing Centre, Bengaluru (‘the Ld. AO, CPC’) by not allowing the benefit of taxation u/s. 115BAA, which is against the provisions of the Act and rule made thereunder. Thus, benefit of concessional rates of taxation u/s. 115BAA of the Act may kindly be allowed to the appellant company and the Intimation u/s. 143(1) is liable to be quashed.
2. 5 On the facts and in the circumstances of the case and in law, the Ld. AO, CPC and the Ld. Jt. CIT(A) have erred in not appreciating that the appellant company had already filed Form No. 10-IC for the AY 2023-24 on 28.12.2023 and therefore there was no requirement of filing Form No. 10-IC again in AY 2024-25. The same is not in accordance with the provisions of the Act and rules made thereunder. Thus, Intimation u/s. 143(1) of the Act dated 22.01.2025 is liable to be quashed.
3. On the facts and in the circumstances of the case and in law, the Ld. AO, CPC has erred in denying benefit of concessional rate of taxation u/s. 115BAA of the Act without issuing any Notice for proposed adjustments/modification in tax rates and without assigning any reasons thereof which is against the principles of natural justice and thus, the Intimation u/s. 143(1) of the Act is liable to be quashed and the resultant demand is liable to be deleted.
The appellant company craves leave to add, alter, amend or withdraw any of the grounds of appeal.”
3. 1 Record of Hearing
3.2 The hearing in the matter took place before this Tribunal on 11.08.2026 when the Ld. AR & on the behalf of the Assessee appeared before us & inter-alia contended that the “Impugned Order” is bad in law, illegal & not proper. It, therefore, deserves to be Set Aside.
3.3 The Ld AR has placed on the record of this Tribunal a Paper book containing Pages 1 to 28 and copy of in case of Reotech Process Equipment (P) Ltd v. ITO [IT Appeal No.1411 (Chny) of 2025, dated 1-9-2025].
3.4 During the course of the hearing Ld AR has brought to our attention the Facts of the case which we have already stated in the Factual Matrix as aforesaid. In brief it was repeated & reiterated that in the Impugned Assessment Order & Impugned Order the claim of the Assessee for benefit u/s 115BAA is denied despite the relevant form 10-IC dt 28.12.2023 (Paper Book page 5) mandated that option u/s (5) of 115BAA is required to be exercised once for any previous year & cannot be subsequently withdrawn for the same or any other previous year. In this regard out attention was also invited to paper book page 1 of ITR for AY 2023-24 dated 29.12.2023 & paper book page 2 of ITR AY 2023-2024 to (e) in the filing status where it was shown that even in AY 2023-204 benefit of Section 115BAA was claimed. Basis Paper Book page 4 our attention was invited to form CD of AY 2023-2024 Serial No:- 8(a) where too option u/s 115BAA was opted for. Per contra the Ld DR appearing for the Revenue stated that subsection (5) of section 115BAA contemplates filing of Form 10IC (Rule 21AE) on or before due date specified under subsection (1) of section 139 for furnishing the return of Income for any Previous Year relevant to the Assessment Year commencing on or after the 1st day of April 2020. No declaration & (or delayed declaration leads to denial of Section 115BAA. The Assessee is in Appeal for AY 2024-2025 & Form No 10IC is on record for this AY 2024-2025. Reliance was placed on Pr. CIT v. Wipro Ltd 446 ITR 1 (SC) that Taxing statute must be read & complied literally & strictly particularly so where the assessee is seeking benefit of exemption or deduction provisions. The hearing was over & closed. During the course of hearing reference was made by the Bench to the decision of this Tribunal dt 30.09.2025 in the case of Sanjana Clothings (P.) Ltd. v. AID, CPC 215 ITD 256 (Indore–Trib)/ITA Nao:- 841/IND/2024 the copy of which was tendered on same day by Ld AR.
4. Observations, Finding and Conclusions
4.1 We have to decide the legality, validity and proprietary of the “Impugned Order” basis records of the case & the rival submission canvassed before us.
4.2 We have carefully perused the records of the case and have heard the submissions.
4.3 We basis records of the case and after hearing and further upon examining the rival contentions of the Ld AR and the Ld DR canvassed before us are of the considered opinion that orders of the lower authorities deserves to be Set Aside as the Assessee had filed the requisite Form No:- 10-IC [subrule (1) of rule 21AE] & had exercised the option under subsection (5) of Section 115BAA on 28.12.2023. In the said form at Para 6 an undertaking is taken that option u/s 115BAA(5) is to be exercised once & same cannot be withdrawn. We further hold basis subsection (5)of 115BAA that such option once exercised shall apply to subsequent Assessment Years. We note & observe that for the year under consideration AY 20242025 Form 10IC holds the field even though the same was filed on 28.12.2023. Para 1 of the Form No:-10IC is for subsequent years too [Paper Book Page 5]. We finally hold that Section 115BAA falls under chapter XII – Determination of Tax in certain cases & Section 115BAA w.e.f. 01.04.2020 gives Domestic Company an option to claim Tax@22% on the total Income subject to terms mentioned therein. One of the term is filling of form 10IC [Rule 21AE] by virtue of subsection (5) thereof which option is to be exercised only once & once exercised same shall apply to subsequent years too. There is No requirement to file the said form for each succeeding and or subsequent years.
4.4 In view of above Position of Section 115BAA(5) & Form 10IC [Rule 21AE] we have no hesitation to hold that in the Instant case Form No 10IC was filed by the Assessee on 28.12.2023 which fact is undisputed & that same holds the field for AY 2024-2025 too & accordingly the Impugned Order is Set Aside & Appeal of the Assessee is allowed. Any other Interpretation would render the same nugatory & otiose.
4.5 In the Premises drawn up by us as aforesaid we Set Aside the Impugned Order & allow the Appeal of the Assessee.
5. Order
5.1 In the Result “Impugned Order” is set aside & Appeal of Assessee is allowed.
5.2 The appeal of the Assessee is allowed.

Rajesh Mehta and Apurva Mehta, CAs for the Appellant. Binay Kumar Rai, Sr. DR for the Respondent.
ORDER
Paresh M. Joshi, Judicial Member.- This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961, [herein after referred to as the Act for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order bearing Number :-ITBA/APL/S/250/2025-26/1076452108(1) dated 26.05.2025 passed by the Ld. CIT(A) u/s 250 of the Act which is hereinafter referred as the “Impugned Order”. The Relevant Assessment Year is 2024-25 and the corresponding Previous Period is from 01/04/2023 to 31/03/2024.
2. FACTUAL MATRIX
2.1 That as & by way of an Intimation Order passed u/s 143(1) of the Act, the Assessee’s claim u/s 115BAA of the Act was not considered despite the same was claimed in the Income Tax Return filed on 15.11.2024. In the Income Tax Return total Income was at Rs 13,90,80,470/- the Tax liability as provided by Tax payer was at Rs 3,52,30,284/- however the same was computed at Rs 4,89,14,776/-. Net Taxable amount was at Rs 1,15,38,490/-. That the aforesaid Intimation Order bears Demand Reference No:- 2024202437346455423C & that the same is dated 22.01.2025 which is hereinafter referred to as the “Impugned Intimation Order” for sake of brevity [Page 31 of Appeal Memo].
2.2 In the ITR total Income is at Rs 13,99,80,470/- & a refund of Rs 39,09,230/- was claimed as total Taxes paid were more than what was coming at the time of filing ROI [Page No. 7 of the Paper Book]. In the ITR [Page No. 8 of the Paper Book] option u/s 115BAA was exercised at (e) “the filing status”. ROI is dated 15.11.2024. In Form 3CD [Page No. 10 of the Paper Book] at Serial No:-8(a) the Assessee too has opted for Taxation u/s 115BAA. The form No:- 10-IC dated 28.12.2023 for claiming benefit u/s 115BAA is at Page No. 5 of the Paper Book. On Page No. 6 of the Paper Book Form 10-IC Para 6 states that “I understand that the option under subsection (5) of Section 115BAA once exercised for any Previous Year cannot be subsequently withdrawn for the same or any other Previous Year”.
2.3 That the Assessee being Aggrieved by the aforesaid “Impugned Assessment Order” prefers the first Appeal u/s 246A of the Act before the Ld CIT(A) who by the “Impugned Order” has dismissed the first appeal of the Assessee on the grounds & the reasons specified therein. The core grounds & the reasons for the dismissal of the 1st appeal was as under: –
5. Decision
“5.1 On Grounds of Appeal Nos. 1 to 4:- Upon perusal of records, it is found that Form 10 IC was filed late on 28.12.2023 for the Assessment Year 2023-24. Section 115BAA of the Income Tax Act, 1961 offers a reduced tax rate for domestic companies subject to the conditions as per Rule 21AE (1) of the Income Tax Rules which allows a domestic company to benefit from lower tax rates by filing Form 10 IC. Form 10 IC must be submitted by the ‘due date’ for filing the company’s return for the previous year. If a company files form 10 IC after the due date, the option under Section 115BAA will be treated as not exercised. Hence, the company will not be eligible for the concessional tax rate for that assessment year. In order to opt for concessional tax regime under Section 115BAA in the subsequent year, the appellant has to exercise the option afresh in the subsequent year by filing Form 10 IC on or before the due date of filing of return of income under Section 139(1) of the Act.”
“5.2 In the present case, Form 10 IC was filed late on 28.12.2023 for the Assessment Year 2023-24 which was not as per the provisions of section 115BAA to claim concessional tax rate. In order to opt for concessional tax regime under Section 115BAA for Assessment Year 2024-25, the appellant had to exercise the option afresh in the Assessment Year 2024-25 by filing Form 10IC on or before the due date of filing of return of income under Section 139(1) which the appellant has not admittedly done. Therefore, the appellant is not eligible for concessional tax rate u/s 115BAA of the Act for the Assessment Year under consideration.”
“5.3 The appellant has placed reliance on the judgement of the Hon’ble Supreme Court in Dilip Kumar & Co. [(2018) 9 SCC] and claimed that when mandatory and directory conditions are clubbed, fulfilling the former is sufficient. Further, the appellant has relied upon CBDT Circular No. 19/2023 dated 23.10.2023, which condoned late filing of Form 10-IC in genuine cases.
The judgement of the Hon’ble Supreme Court and CBDT Circular are not applicable in the present case as no Form 10IC has been filed by the appellant for the year under reference.”
“5.4 Further, the appellant has placed reliance on the judgement of the Hon’ble ITAT in the case of JSW Minerals Trading Pvt. Ltd. In that case, the Assessment Year involved was 2020-21 which was the very first Assessment Year and due to the fault on the part of the System, the assessee had not filed the Form along with the return of income. But in the present case, the assessment year is 2024-25 and there was no fault in the system and the appellant could have filed Form 10IC for the assessment year 2024-25 before the due date of filing of return of income. Form 10 IC already filed for the assessment year 2023-24 was late and the appellant was considered as not eligible for concessional tax rate u/s 115BAA on the basis of that Form 10IC filed on 28-12-2023.” “5.5 In view of the foregoing, I am of the considered view that the assessee didn’t validly exercise the option under Section 115BAA of the Act for the assessment year 2024-25. Accordingly, the appeal is dismissed.”
“6. In the result, the appeal is dismissed.”
2.4 That the Assessee being aggrieved by the aforesaid “Impugned Order” has preferred the Instant Second Appeal before us & has raised the following grounds of Appeal in the Form No: -36 against the Impugned Order which are as under: -” 1. On the facts and in the circumstances of the case and in law, the Ld. Joint Commissioner of Income Tax (Appeals), Panchkula [‘the Ld. Jt. CIT(A)’] has erred in confirming the action of the Ld. Assessing Officer, Centralized Processing Centre, Bengaluru (‘the Ld. AO, CPC’) by not allowing the benefit of taxation u/s. 115BAA, which is against the provisions of the Act and rule made thereunder. Thus, benefit of concessional rates of taxation u/s. 115BAA of the Act may kindly be allowed to the appellant company and the Intimation u/s. 143(1) is liable to be quashed.
2. 5 On the facts and in the circumstances of the case and in law, the Ld. AO, CPC and the Ld. Jt. CIT(A) have erred in not appreciating that the appellant company had already filed Form No. 10-IC for the AY 2023-24 on 28.12.2023 and therefore there was no requirement of filing Form No. 10-IC again in AY 2024-25. The same is not in accordance with the provisions of the Act and rules made thereunder. Thus, Intimation u/s. 143(1) of the Act dated 22.01.2025 is liable to be quashed.
3. On the facts and in the circumstances of the case and in law, the Ld. AO, CPC has erred in denying benefit of concessional rate of taxation u/s. 115BAA of the Act without issuing any Notice for proposed adjustments/modification in tax rates and without assigning any reasons thereof which is against the principles of natural justice and thus, the Intimation u/s. 143(1) of the Act is liable to be quashed and the resultant demand is liable to be deleted.
The appellant company craves leave to add, alter, amend or withdraw any of the grounds of appeal.”
3. 1 Record of Hearing
3.2 The hearing in the matter took place before this Tribunal on 11.08.2026 when the Ld. AR & on the behalf of the Assessee appeared before us & inter-alia contended that the “Impugned Order” is bad in law, illegal & not proper. It, therefore, deserves to be Set Aside.
3.3 The Ld AR has placed on the record of this Tribunal a Paper book containing Pages 1 to 28 and copy of in case of Reotech Process Equipment (P) Ltd v. ITO [IT Appeal No.1411 (Chny) of 2025, dated 1-9-2025].
3.4 During the course of the hearing Ld AR has brought to our attention the Facts of the case which we have already stated in the Factual Matrix as aforesaid. In brief it was repeated & reiterated that in the Impugned Assessment Order & Impugned Order the claim of the Assessee for benefit u/s 115BAA is denied despite the relevant form 10-IC dt 28.12.2023 (Paper Book page 5) mandated that option u/s (5) of 115BAA is required to be exercised once for any previous year & cannot be subsequently withdrawn for the same or any other previous year. In this regard out attention was also invited to paper book page 1 of ITR for AY 2023-24 dated 29.12.2023 & paper book page 2 of ITR AY 2023-2024 to (e) in the filing status where it was shown that even in AY 2023-204 benefit of Section 115BAA was claimed. Basis Paper Book page 4 our attention was invited to form CD of AY 2023-2024 Serial No:- 8(a) where too option u/s 115BAA was opted for. Per contra the Ld DR appearing for the Revenue stated that subsection (5) of section 115BAA contemplates filing of Form 10IC (Rule 21AE) on or before due date specified under subsection (1) of section 139 for furnishing the return of Income for any Previous Year relevant to the Assessment Year commencing on or after the 1st day of April 2020. No declaration & (or delayed declaration leads to denial of Section 115BAA. The Assessee is in Appeal for AY 2024-2025 & Form No 10IC is on record for this AY 2024-2025. Reliance was placed on Pr. CIT v. Wipro Ltd 446 ITR 1 (SC) that Taxing statute must be read & complied literally & strictly particularly so where the assessee is seeking benefit of exemption or deduction provisions. The hearing was over & closed. During the course of hearing reference was made by the Bench to the decision of this Tribunal dt 30.09.2025 in the case of Sanjana Clothings (P.) Ltd. v. AID, CPC 215 ITD 256 (Indore–Trib)/ITA Nao:- 841/IND/2024 the copy of which was tendered on same day by Ld AR.
4. Observations, Finding and Conclusions
4.1 We have to decide the legality, validity and proprietary of the “Impugned Order” basis records of the case & the rival submission canvassed before us.
4.2 We have carefully perused the records of the case and have heard the submissions.
4.3 We basis records of the case and after hearing and further upon examining the rival contentions of the Ld AR and the Ld DR canvassed before us are of the considered opinion that orders of the lower authorities deserves to be Set Aside as the Assessee had filed the requisite Form No:- 10-IC [subrule (1) of rule 21AE] & had exercised the option under subsection (5) of Section 115BAA on 28.12.2023. In the said form at Para 6 an undertaking is taken that option u/s 115BAA(5) is to be exercised once & same cannot be withdrawn. We further hold basis subsection (5)of 115BAA that such option once exercised shall apply to subsequent Assessment Years. We note & observe that for the year under consideration AY 20242025 Form 10IC holds the field even though the same was filed on 28.12.2023. Para 1 of the Form No:-10IC is for subsequent years too [Paper Book Page 5]. We finally hold that Section 115BAA falls under chapter XII – Determination of Tax in certain cases & Section 115BAA w.e.f. 01.04.2020 gives Domestic Company an option to claim Tax@22% on the total Income subject to terms mentioned therein. One of the term is filling of form 10IC [Rule 21AE] by virtue of subsection (5) thereof which option is to be exercised only once & once exercised same shall apply to subsequent years too. There is No requirement to file the said form for each succeeding and or subsequent years.
4.4 In view of above Position of Section 115BAA(5) & Form 10IC [Rule 21AE] we have no hesitation to hold that in the Instant case Form No 10IC was filed by the Assessee on 28.12.2023 which fact is undisputed & that same holds the field for AY 2024-2025 too & accordingly the Impugned Order is Set Aside & Appeal of the Assessee is allowed. Any other Interpretation would render the same nugatory & otiose.
4.5 In the Premises drawn up by us as aforesaid we Set Aside the Impugned Order & allow the Appeal of the Assessee.
5. Order
5.1 In the Result “Impugned Order” is set aside & Appeal of Assessee is allowed.
5.2 The appeal of the Assessee is allowed.