TaxTMI 
TaxTMI 
2024 (10) TMI 698
X X X X Extracts X X X X
X X X X Extracts X X X X
....bad in law, void-ab-initio and is liable to set aside in full. 2) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO because the assessee inadvertently while filing the Income Tax Return for the Assessment Year 2022-23 could not file Form 10IC on the Income Tax Portal though the same has been claimed in ITR as well as Tax Audit Report thereby giving sufficient intimation to the Income Tax Department of the assessee's intent to avail benefit u/s 115BAA. 3) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO because filing of form 10-IC is directive in nature which can be filed late, even at the time of assessment but can't be fatal to the assessee and the company can't be made liable for higher taxation. 4) That on the facts and in the circumstances of the case and in law, Ld CIT-A erred in sustaining the order passed by Ld AO as the Assessment order of the Ld Assessing Officer is bad in law and facts as it is prejudicial to the interests of the appellant due to lack of principles of natural justice or violati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e's gross revenue was below Rs. 250 crores, thus eligible for the lower tax rate @ 25%. The assessee cited relevant documentation to substantiate its claim. 5. On reviewing the case of the assessee CIT(A) noted that while the return was filed within the extended due date, the assessee did not indicate opting for Section 115BAA in the ITR, nor was Form 10-IC filed. Consequently, the primary conditions necessary to claim the benefits under Section 115BAA were not satisfied. However, upon examination of the turnover, the Additional CIT(A) held that the correct tax rate applicable should be 25% rather than 30%, given that the assessee's turnover fell below the stipulated threshold. Therefore, the assessing officer was directed to compute tax at the rate of 25%, and the appeal of the assessee was partly allowed for statistical purposes. 6. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(Appeals). Before us, the contentions of the counsel for the assessee are two-fold: firstly, the counsel argued that the assessee had filed return of income within the due stipulated date, however inadvertently, there was a delay in filing of form 10-IC. It was ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessment years and other provisions of the Act shall apply, as if the option had not been exercised for the assessment year relevant to that previous year and subsequent assessment years. (2) For the purposes of sub-section (1), the total income of the company shall be computed,- (i) without any deduction under the provisions of section 10AA or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) or sub-section (2AB) of section 35 or section 35AD or section 35CCC or section 35CCD or under any provisions of 37[Chapter VI-A other than the provisions of section 80JJAA or section 80M]; (ii) without set off of any loss carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); (iii) without set off of any loss or allowance for unabsorbed depreciation deemed so under section 72A, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); and (iv) by claiming the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... same or any other previous year. 9. Accordingly, from perusal of the statutory provisions as contained in Section 115BAA of the Act, it is specifically provided that once the assessee has opted to be governed by the concession rate of tax as contained in the aforesaid section this provision shall continue to apply to the assessee for subsequent assessment years as well. Further the second proviso to section 115BAA of the Act states that once this option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year and would continue to remain in force. Therefore, from a bear reading of statutory provisions, it is evident that there is no requirement that the assessee is required to file a separate claim in form 10- IC for each subsequent assessment year to be able to be governed by the concession rate of tax as provided under section 115BAA of the Act. Once this option has been exercised by the assessee in the first year, and the assessee has filed the necessary form 10-IC within the prescribed timelines in the first year of claim of such concessional rate of tax, there is no separate/specific requirement that the assessee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1 and Form 10IC filed on 7-2-2021 and further the assessee was allowed the option exercised for lower tax rate for assessment year 2020-21. Now once the assessee has validly opted for 115BAA for assessment year 2020-21 and revenue authorities having not found any error in such valid claim and has allowed the option exercised for lower tax rate for assessment year 2020-21, then it is understood that the assessee was not required to exercise the option for the subsequent assessment year under the provision of section 115BAA(5), unless the first option is rendered invalid due to violation of any condition contained in sub-clause (ii) or sub-clause (iii) of clause (a) or clause (b) of section 115BAB(2). Since there is no violation at the end of assessee for assessment year 2020-21 and the valid option has been exercised under section 115BAA for assessment year 2020-21, the assessee is eligible for lower rate of tax for the subsequent assessment years also subject to the other conditions provided under the Act. Therefore, the finding of the Commissioner (Appeals) is set aside and the sole ground of appeal raised by the assessee is allowed and the Assessing Officer is directed to calcula....