ITAT rejects taxpayer plea after conflicting tax regime choices
The Mumbai tribunal ruled that a return selection cannot override a previously filed Form 10-IEA, though it allowed for eligible deductions.
The Income Tax Appellate Tribunal (ITAT) in Mumbai has rejected a taxpayer's argument that his income tax return selection should take precedence over a previously filed Form 10-IEA, according to a Times of India report.
The case involved a taxpayer who had opted for the new tax regime in assessment year 2024-25. On August 31, 2025, he filed Form 10-IEA to move to the old regime for assessment year 2025-26, but later selected the new regime when filing his return on September 16, 2025.
The Central Processing Centre (CPC) processed the return under the old regime and raised a tax demand of Rs 1,41,480. The taxpayer challenged this, arguing that the choice made in the return should be respected, but the Commissioner of Income Tax (Appeals) upheld the adjustment.
The Mumbai ITAT bench ruled that once a specific form is used to opt out of the new regime, a taxpayer cannot use the return to choose the new regime instead. The tribunal noted that the taxpayer had ticked the wrong box in his return, creating a conflict with the filed form.
While the tribunal dismissed the main appeal, it granted partial relief on an alternative plea. It ruled that if the old regime applies due to the form, the taxpayer must be allowed deductions available under that regime, such as those under Section 80C, 80D, and 80TTB.
The tribunal set aside the appellate order on the issue of deductions and directed the Assessing Officer to examine the taxpayer's eligibility. The order was pronounced on September 17, 2026.