Assessee's Tax Appeal: Rates Dispute Remanded for Verification

The appeal by the assessee was partly allowed for statistical purposes. The challenge to the computation of tax liability at 30% instead of the concessional rate of 22% under Section 115BAA was dismissed due to the failure to file Form 10-IC by the due date. However, the request to apply the tax rate of 25% instead of 30% based on turnover criteria was remanded back to the Assessing Officer for factual verification, providing the assessee with an opportunity to present their case.

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Issues:
1. Challenge to the computation of tax liability at 30% instead of 22% under section 115BAA of the Income Tax Act.
2. Request to apply the tax rate of 25% instead of 30% due to turnover being less than Rs. 400 crore.

Issue 1: Challenge to Tax Liability Computation at 30% instead of 22% under Section 115BAA:
The appeal filed by the assessee contested the computation of tax liability at 30% instead of the concessional rate of 22% available under section 115BAA of the Income Tax Act. The Assessing Officer determined the total income and tax liability, which the assessee disputed before the Commissioner of Income Tax (Appeals). However, the appeal was dismissed as the mandatory requirement of filing Form 10-IC before the due date was not fulfilled by the assessee. The Tribunal noted that the due date for filing the return of income was extended to 15/02/2021, but the Form 10-IC was not submitted by the assessee, rendering them ineligible for the reduced tax rate. The Tribunal referred to a previous decision where it was clarified that the time for filing Form 10-IC was not extended beyond a certain date. Consequently, the Tribunal upheld the decision of the Commissioner of Income Tax (Appeals) on this issue, dismissing the appeal.

Issue 2: Request to Apply Tax Rate of 25% Due to Turnover Criteria:
The second issue raised by the assessee was regarding the application of the tax rate at 25% instead of 30% based on the turnover criteria. The assessee argued that the turnover in the financial year 2018-19 was less than Rs. 400 crore, making them eligible for the lower tax rate. The Tribunal, after considering the submissions from both sides, decided to remand this issue back to the Assessing Officer for factual verification. The Tribunal directed the AO to compute the tax liability applying the appropriate tax rate as per the provisions of the law and ensuring a fair opportunity for the assessee to present their case. Consequently, the second ground raised by the assessee was allowed for statistical purposes.

In conclusion, the appeal by the assessee was partly allowed for statistical purposes, with the first issue regarding the reduced tax rate under section 115BAA being dismissed, and the second issue related to the turnover criteria for tax rate application being remanded to the Assessing Officer for further verification.

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