Concessional tax rate for domestic company depends on verified turnover in the preceding year; audited accounts needed for threshold check.

A domestic company claimed concessional tax at 25% for the relevant assessment year on the basis that its turnover in the preceding financial year did not exceed the prescribed threshold. The audited balance-sheet was produced in support, but the return form did not provide a specific column for the turnover particulars. Because the existing record was not sufficient for a final factual finding, verification of the audited financials and related details was required. The matter was therefore sent back for examination of turnover or gross receipts, and the concessional rate would apply if the threshold was not exceeded.

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Issues: Whether the assessee, a domestic company, was entitled to tax at 25% for the relevant assessment year on the basis that its turnover in the preceding financial year did not exceed the prescribed threshold, and whether the matter required verification of the audited financials.

Analysis: The applicable tax provision for the relevant assessment year provided a concessional rate for a domestic company whose turnover or gross receipts in the preceding financial year did not exceed the prescribed limit. The assessee produced audited balance-sheet material to support its claim, while the return form for the assessment year did not contain a specific column for furnishing the relevant turnover details. In these circumstances, the existing material was considered insufficient for a final factual determination at the appellate stage, and verification of the audited financials and other relevant details was found necessary.

Conclusion: The matter was restored to the jurisdictional Assessing Officer for verification of the turnover or gross receipts for the relevant financial year, and if the threshold was not exceeded, tax was to be applied at 25% only; the assessee succeeded for statistical purposes.

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