TaxTMI 
TaxTMI 
2025 (5) TMI 2157
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....A of the Act, which was introduced by the virtue of Taxation Laws (Amendment) Act, 2019 with effect from 01.04.2020. The petitioner had not opted for paying tax at a lower rate as it had not indicated so in the affirmative against the requisite box in its return. The petitioner claimed that the same was an inadvertent error and accordingly, filed its revised return. However, the respondents have not accepted the change in option and this led the petitioner to file the present petition. PREFATORY FACTS 3. The petitioner had filed its return of income for the AY 2020-21 on 13.02.2021 declaring the total income of Rs. 60,93,780/- after setting off an amount of Rs. 5,10,04,486/-. The petitioner also reflected its book profits as Rs. 3,14,41,630/-. The petitioner had, in its return, not opted for taxation under Section 115BAA of the Act which was introduced by the virtue of Taxation Laws (Amendment) Act, 2019 with effect from 01.04.2020. 4. The petitioner claims that at the material time its chartered accountant and finance officer were affected by COVID-19. Notwithstanding the same, they had filed the petitioner's return despite both suffering "under Corona." The return was filed on....
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....er Section 156 of the Act raising the demand of Rs. 62,17,050/- and initiated the penalty proceedings under Section 270A of the Act. 7. The petitioner filed the revision petition before the PCIT, which was rejected by the impugned order. REASONS AND CONCLUSIONS 8. Ms Bansal, the learned senior counsel appearing for the petitioner contended that there was no column for selecting the option to avail the benefit of Section 115BAA of the Act in the return and therefore, the petitioner cannot be faulted for its return not reflecting this option. She also submitted that the error was occasioned due to confusion at the material time and coupled with the fact that the petitioner was facing severe difficulties in regard to the statutory compliances, on account of the disruptions caused by the outbreak of Covid-19. She submitted that in the aforesaid context, the CBDT had decided to extend the time period for the assessees who had not complied with the requirements of availing the benefit of Section 115BAA of the Act in the prescribed manner. Accordingly, the CBDT had issued the Circular granting the assessees time to file the same. And, the petitioner had filed the requisite form - Form ....
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....n clause (ii) and clause (iii) of sub-section (2) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year: Provided that where there is a depreciation allowance in respect of a block of asset which has not been given full effect to prior to the assessment year beginning on the 1st day of April, 2020, corresponding adjustment shall be made to the written down value of 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 assi....
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....ment Unique number/ Document Identification number (DIN) Date of such Notice or Order or if filed u/s 92CD enter date of advance pricing agreement Residential Status RES-Resident Whether the assesse has opted for taxation under section 115BA/115BAA/ 115BAB? (applicable on Domestic Company) None of above. Whether total turnover/ gross receipts in the previous year 2017-18 exceeds 400 crore rupees? (Yes/No) (applicable for Domestic Company) No." 12. It is clear from the above that against the entry whether the petitioner has opted for taxation under Section 115BA/115BAA/115BAB, the petitioner had responded "none of above". The contention that there was no specific box (space) in the return to reflect the option, as contended on behalf of the petitioner, is clearly erroneous. 13. The contention that the petitioner had in fact opted for the lower taxation under Section 115BAA of the Act, but inadvertently not indicated its option, is also unpersuasive. It is not in dispute that the petitioner's computation of depreciation was not strictly in accordance with the terms of Sub-section (2) of Section 115BAA of the Act. However,....