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of <h1>Tribunal Lowers Tax Rate to 22% for 2020-21 Due to Filing Delays and Technical Issues, Granting Relief to Taxpayer.</h1> <h3>M/s. KHR Hospitality India Ltd. Versus Commissioner of Income-tax (Appeals) / Income Tax Department/CPC Bengaluru/Assistant Director of Income Tax</h3> M/s. KHR Hospitality India Ltd. Versus Commissioner of Income-tax (Appeals) / Income Tax Department/CPC Bengaluru/Assistant Director of Income Tax - TMI Issues:- Appeal against order of National Faceless Appeal Centre regarding reduced rate of tax under section 115BBA of the Income Tax Act, 1961 for Assessment Year 2020-21.- Delay in filing Form 10IC leading to denial of reduced tax rate.- Condonation of delay by Principal Commissioner of Income Tax.- Technical issue preventing access for filing Form 10IC.- Decision on appeal grounds raised by the assessee.Analysis:The appeal was filed by the revenue against the order of the National Faceless Appeal Centre concerning the denial of the reduced rate of tax under section 115BBA of the Income Tax Act, 1961 for the Assessment Year 2020-21. The assessee's grievance was that the claim for a reduced tax rate was rejected due to non-submission of Form 10-IC, resulting in the income being taxed at 30% instead of 22%.During the hearing, the assessee explained that the delay in filing Form 10IC was due to technical issues faced on the income tax portal. Subsequently, the Principal Commissioner of Income Tax condoned the delay in filing Form 10IC, allowing the assessee to claim the benefit of the reduced tax rate of 22% instead of 30%. The Tribunal noted that even though the delay was condoned, the assessee still faced technical difficulties in accessing the portal to file Form 10IC.Considering the condonation of delay and the technical issues faced by the assessee, the Tribunal allowed the appeal raised by the assessee. Grounds 1 to 5 of the appeal were allowed, granting the benefit of the reduced tax rate. However, Ground No. 6, which raised an alternative argument regarding the normal tax rate applicable for companies, was not addressed as it became academic in nature after allowing the earlier grounds.In conclusion, the Tribunal allowed the appeal of the assessee, directing that the income be taxed at the reduced rate of 22% instead of the initially levied 30%. The decision was made based on the condonation of the delay in filing Form 10IC and the technical challenges faced by the assessee in accessing the portal for submission.
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