2024 (11) TMI 1464

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.... to assessment year 2021-22. 2. Grounds of appeal raised by the assessee read as under:- 1). "Addition in tax liability on account not providing the benefit under section 115BAA of the Act, 1961. 1) The Learned Commissioner of Income Tax (Appeals) ("CIT(A)") erred in confirming the addition in tax liability of Rs 12,26,043. This decision was made without due consideration of the provisions outlined in section 115BAA of the Income Tax Act, 1961. Instead of applying the provisions of Section 115BAA of the Income Tax Act and erroneously relied on the provisions of section 115JB of the Income Tax Act, 1961, thereby creating an unjust tax demand. 2) The CIT (A) has failed to consider that the appellant submitted Form-10IC for the same i....

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....ome for AY 2021-22 electronically on 11.03.2022, declaring total income at INR 2,18,68,649/-. An intimation u/s 143(1) of the Act was issued by the Centralized Processing Center ("CPC") on 17.10.2022 in which the total income returned by the assessee was increased from INR 63,48,872/- to INR 75,74,915/-. The tax liability was also increased as the CPC while processing the return of income, has denied the benefit of provision of section 115BAA of the Act. 7. Aggrieved, the assessee preferred appeal before the Ld.CIT(A). The Ld.CIT (A) upheld the additions made by the AO on the ground that the assessee company has not filed Form 10IC for the current AY 2021-22 and thus, justified the denial of benefit of provisions of section 115BAA of the A....

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....tes a substantive right on the assessee. The option once exercised in any previous year cannot be withdrawn in later year. Once the assessee opted for taxation under section 115BAA of the Act and exercised, there can be no reason to deny the benefit in the years subsequent to the AYs in which the option was first exercised. Where the statute itself provides for incapacity of the assessee to withdraw the exercise of option, the requirement of filing Form 10IC in the subsequent year, in our considered view becomes an irrelevant consideration. 13. The reasons are not far to seek. Once the assessee loses its right to deviate from the option exercised in the earlier year, no further obligation by way of filing Form 10IC can be fastened. This is....