TaxTMI 
TaxTMI 
2024 (9) TMI 216
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....f the Income Tax Act (for short 'the Act'] for Assessment Year 2021-22 and further direction to the respondent to permit the petitioner to file Form 10-IC electronically as provided under section 115BAA of the Act read with Rule 21AE of the Income Tax Rules, 1962 [for short 'the Rules'] for the Assessment Year 2021-22 and re-process the return of income filed by the petitioner to give the benefit of reduced rate of tax. 5. Brief facts of the case are that the petitioner had filed original return of income for Assessment Year 2021-22 on 15.12.2021 declaring total income of Rs. 1,98,03,950/-. 6. By Taxation (Amendment) Ordinance,2019, section 115BAA was inserted in the Act wherein, existing as well as newly formed companies were given liberty to opt for concessional rate of tax at the base rate of 22% with caveat that such assessee-company shall forego all deductions available to it as stated under section 115BAA of the Act. 7. It is the case of the petitioner that to avail such concessional rate of 22% of the tax, the petitioner has complied with all the conditions as per section 115BAA of the Act. However, due to oversight of the accountant and as the petitioner was applying the....
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....hearing was fixed on 16.10.2023, the order for rejecting the application was filed prior thereto on 13.10.2023. 13. Thereafter, on 23.10.2023, the Circular No. 19/2023 was issued by the CBDT to condone the delay under section 119 (2) (b) of the Act in filing Form 10-IC for Assessment Year 2021-22. The petitioner therefore, filed review application dated 31.10.2023 before the respondent No. 2 pointing out that now the petitioner fulfills the condition as submitted in Circular No. 19/2023. 14. The respondent No. 2 provided hearing on 10.01.2024 to the petitioner and during the course of hearing, the petitioner explained to the respondent No. 2 that in the statement of income, the petitioner has opted for tax under section 115BAA of the Act, however, due to some technical glitch, it appears that in Form ITR-6, the boxes are itself not visible and therefore, merely on the basis of the technical glitch, the petitioner should not be deprived of the benefit of lower tax of rate for non-filing of the Form 10-IC. 15. However, the respondent No. 2, by impugned order dated 22.02.2024, rejected the application of the petitioner holding that the petitioner did not put any remark against Colu....
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....spondent No. 2 as per the report dated 22.12.2023 with regard to condonation of delay as per Circular No. 19/2023. It was observed that the petitioner-company did not put any remarks against Column (e) meant for giving option for taxation under section 115BAA of the Act and therefore, the delay in filing Form 10-IC cannot be condoned and review application was rightly rejected. 19. Considering the submissions made by learned advocate for the parties and on perusal of the material documents placed on record by the petitioner, it appears that the petitioner has filed the return of income under section 139 (1) of the Act before the due date by applying the provisions of section 115BAA of the Act. 20. The petitioner has computed the income as per the statement of income by applying the reduced rate at 22% under section 115BAA of the Act applying the conditions prescribed in the said section which reads as under: "115BAA. [Tax on income of certain domestic companies. (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, other than those mentioned under section 115BA and section 115BAB, the income-tax payable in respect of the total incom....
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....f such block of assets as on the 1st day of April, 2019 in the prescribed manner, if the option under sub-section (5) is exercised for a previous year relevant to the assessment year beginning on the 1st day of April, 2020. (4) In case of a person, having a Unit in the International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, which has exercised option under sub-section (5), the conditions contained in sub-section (2) shall be modified to the extent that the deduction under section 80LA shall be available to such Unit subject to fulfilment of the conditions contained in the said section. Explanation. - For the purposes of this sub-section, the term "Unit" shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005. (5) Nothing contained in this section shall apply unless the option is exercised by the person in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the 1st day of April, 2020 and such option once exercised shall apply to ....
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....that the petitioner has exercised the option under section 115BAA of the Act. Therefore, technical consideration cannot be applied to prevent the substantial justice. This Court in case of Rajkamal Healds and Reeds Pvt. Ltd vs. Assistant Director of Income Tax in Special Civil Application No. 1085 of 2022 after considering the provision of section 115BAA observed as under: "10. Having heard the learned counsel appearing for the parties and having gone through the materials on record, we are of the view that the writ-applicants should at the earliest file an appropriate application in writing addressed to the Principal Chief Commissioner/ Chief Commissioner making a request to permit him to file the Form 10 IC electronically after condoning the delay in that regard so that the return of the writ-applicant can be re-processed or regular assessment can also be framed accordingly and the liability can be determined. Section 119 of the Act falls under Chapter XIII. Section 119 (1) reads thus : "The Board may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and such autho....
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.... if he is not permitted to file the Form 10 IC electronically." 24. After the aforesaid order was passed by this Court on 02.01.2022, the CBDT has issued Circular No. 6/2022 in exercise of powers conferred under section 119 (2) (b) of the Act for Assessment Year 2020-21 and after considering that representation, the Form 10-IC could not have been filed for Assessment Year 2021-22 within the due date or extended due date and to avoid genuine hardship to the domestic companies in exercising option under section 115BAA of the Act, the CBDT issued Circular No. 19/2023 in exercise of powers conferred under section 119 (2) (b) of the Act. 25. Considering the above facts, respondent No. 2 ought to have condoned the delay in filing Form 10-IC by the petitioner instead of rejecting the review application filed by the petitioner on technical ground as in substance, the petitioner has exercised the option for lower rate of tax under section 115BAA of the Act which is clear from the computation of income available on record. Even in Form ITR-6, the petitioner has filled in the details by computing the tax as provision for current tax in Column 54 at Rs. 49,58,000/- by applying lower rate of ....