Energy Mission Machineries (India) Pvt. Ltd. vs. Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Energy Mission Machineries (India) Pvt. Ltd., filed its return of income for the Assessment Year 2022-23 on November 7, 2022, declaring a total income of Rs. 4,26,50,790/- and opted for the concessional rate of tax under Section 115BAA of the Act. However, the assessee inadvertently omitted to file the requisite Form 10-IC within the permitted time. An intimation order under Section 143(1) of the Act was issued to the assessee, creating a tax demand of Rs. 40,52,170/-, computed at 30% plus applicable surcharge under Section 115JAA of the Act (as against the concessional rate of 22% offered to tax by the assessee). The assessee contended that it had opted for the concessional rate of tax under Section 115BAA, but failed to file Form No. 10-IC to officially exercise the option under sub-Section (5) of Section 115BAA. The assessee submitted that while the intention to avail the concessional rate of tax @22% was expressed in the Tax Audit Report (Form 3CA), an inadvertent error occurred while filing the Income Tax Return (ITR) for the current year, which did not allow for the option to be correctly exercised due to prior year details being filled erroneously in ITR-6. This mistake deprived the assessee of the intended benefit of Section 115BAA of the Act.…

Legal Issues

• 1. Whether the assessee is entitled to the concessional tax rate under Section 115BAA of the Act despite the inadvertent omission to file Form 10-IC?
• 2. Whether the filing of Form 10-IC is a mandatory requirement to avail the concessional tax rate under Section 115BAA of the Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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