2024 (9) TMI 848

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....Delhi (hereinafter referred to as "the CIT(A)") erred in upholding the action of the Centralized Processing Centre (hereinafter referred as "CPC") in computing the appellant's tax liability as per the provision of section 115JB of the Income-tax Act 1961 (hereinafter referred as "Act") although the provisions are not applicable since the assessee has opted for concessional tax regime under section 115BAA of the Act, for reasons which are contrary to the facts of the case and provision of law; 2. The CIT(A) / CPC failed to appreciate that the filing of Form 10-IC to claim concessional tax regime is a procedural requirement and mere delay in filing the same would not disentitle the assessee of such claim; 3. The above gr....

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....t for provisions U/sec 115BAA of the Act. Subsequently, the assessee has complied with the conditions of CBDT circular dated 23-10-2023 and filed Form No.10-IC on 13-11-2023. Further the Ld. AR substantiated the submissions with the judicial decisions, CBDT circular, factual paper book and prayed for allowing the appeal. Per Contra, the Ld. DR supported order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole disputed issue envisaged by the Ld.AR that the CIT(A) has erred in dismissing the claim of the assessee opting for the provisions of Sec. 115BBA of the Act. The Ld.AR contentions are that the assessee has filed the return of income for A.Y.2021-22 within the extended due date u/sec 139(1) o....

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.... avoid genuine hardship to the domestic companies in exercising the option u/s 115BAA of the Act, CBDT in exercise of the powers conferred under section 119(2)(b) of the Act hereby directs that: - The delay in filing of Form No10-IC as per Rule 21AE of the Rules for previous year relevant to A.Y2021-22 is condoned in cases where the following conditions are satisfied: i) The return of income for relevant assessment year has been filed on or before the due date specified under section 139(1) of the Act; ii) The assessee company has opted for taxation u/s 115BAA of the Act in item (e) of "Filing Status" in "Part A- GEN" of the Form of Return of Income ITR-6; and iii) Form No. 10-IC is filed electronically o....

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....tion dated 13-11-2022 issued by respondent no. 2 under Section 143(1) of the Income Tax Act, 1961 [in short "Act"]. 2.1 Via this intimation, a demand amounting to Rs. 1,03,94,820/- has been raised against the petitioner. 3. The principal grievance of the petitioner is, that although in the income tax return, enough and more information had been given, that the petitioner has opted for being taxed at the rate of 22% as provided under Section 115BAA of the Act, the impugned order was passed, only on account of the fact that the petitioner had failed to file Form 10-IC. 4. It is the submission of Mr Vibhor Garg, who appears on behalf of the petitioner, that before passing the impugned intimation dated 13-11-2022, an ....

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....of the Act. 9 To our minds the matter requires to be delved into. 10. Accordingly, issue notice. 10.1 Mr Zoheb Hossain accepts notice on behalf of the respondents/revenue. 11. Counter-affidavit will be filed within the next four weeks. 11.1 Rejoinder there to if any, be filed before the next date of hearing. 12. List the matter on 19-5-2023. 13. In the meanwhile, no precipitate action will be taken against the petitioner in respect of the demand raised via the impugned intimation dated 13-11-2022, till further orders of the Court." 2. As would be evident from the aforesaid extract, the only reason that the petitioner was not taxed at the rate of 22%, as provided under s....

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.... 5. Accordingly. Mr Garg says that the petitioner fulfills the conditions referred to in paragraph 3 of the said circular. 6. In these circumstances, the writ petition is disposed of, with a direction to the CBDT to process the petitioner's request contained in Form 10-IC. 7. The CBDT will process the aforementioned prescribed form within eight (8) weeks from the date of receipt of the order passed today. 8. The interim order dated 14-12-2022, which was made absolute on 19-5-2023, shall continue to operate pending the aforementioned exercise, and for further three (3) weeks, in case the result is adverse to the interest of the petitioner. 9. Parties will act based on the digitally signed copy of ....