The ITAT Pune held that the option exercised under Section 115BAC continues for subsequent years unless withdrawn or invalid under the Act, allowing for the new tax regime for AY 2023-24.
Continuity of Section 115BAC Election Upheld by ITAT Pune
The ITAT Pune has clarified that an election made under Section 115BAC remains valid for subsequent assessment years, even if Form 10-IE is submitted belatedly. The tribunal's ruling permits taxpayers to benefit from the new tax regime for AY 2023-24, provided there is no formal withdrawal of the option.
This judgment addresses concerns around procedural compliance and affirms that procedural lapses, like the belated submission of the form, do not nullify an otherwise valid choice under the Income Tax Act. This decision reinforces the principle of taxpayer rights to opt for beneficial tax regimes without undue penalty for minor procedural errors.
Tax practitioners should consider this judgment when advising clients on tax regime selections and the importance of maintaining proper documentation without fear of unintentional invalidations based on procedural issues.
Citations
- ITAT Pune (2026) TaxGuru 05
