ITA No.1291/Ahd/2024

Parties Involved

Facts Summary

The assessee, a company, filed its return of income on 29.12.2020, declaring a total income of Rs.25,89,450/-. The assessee opted for the special rate of taxation under Section 115BAA of the Income Tax Act, 1961 for the Assessment Year 2020-21. However, the CPC, Bengaluru, computed the tax at the regular applicable rate instead of the concessional rate, raising a tax demand of Rs.1,97,000/- due to the non-filing of Form 10IE as per Rule 21AE of the Income Tax Rules, 1962. The assessee filed an appeal against the Intimation Order under Section 143(1) of the Act, which was rejected by the CIT(A). The assessee argued that the non-filing of Form 10IC was due to a technical error and that it was the first year of availing the benefit under Section 115BAA. The assessee submitted that the form was filed on 29.01.2022 during the appellate proceedings. The issue was whether the non-filing of Form 10IC would prevent the assessee from availing the benefit of Section 115BAA.…

Legal Issues

• 1. Intimation under Section 143(1) of the Act received from CPC, Bengaluru is bad in law and required to be rectified by giving appropriate direction.
• 2. Ld. JCIT(A) erred in law and on facts in confirming calculating tax at normal rate instead of rate specified in Section 115BAA of the Act.
• 3. Ld. JCIT(A) ought to have considered fact that non-filing of form 10IC is procedural lapse which does not lead to non-application of special provision.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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