Failing to file Form 10C Could Lead to Imposition of Higher Rate of Taxes

Please find enclosed a recent judgment by the Hon’ble Delhi High Court.

As per the provisions of the Income Tax Act 1961, a taxpayer is required to file Form 10C in order to avail of the concessional tax rates under s. 115BAA of the Income Tax Act 1961. In the instant case, the taxpayer had opted for s. 115BAA of the Income Tax Act 1961 and failed to furnish Form 10-IC. Therefore, the taxpayer was subject to tax at 30% instead of 22%.

Before the Hon’ble Delhi High Court, the Ld. Counsel for the taxpayer pleaded that, because of a procedural lapse on the part of the taxpayer, he cannot be denied the benefit of s. 115BAA. Accordingly, the Hon’ble Delhi High Court directed the taxpayer to move an application before the CBDT for granting leave to file Form 10C.