TaxTMI 
TaxTMI 
2023 (9) TMI 1719
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....decided by common order to avoid conflicting decision. For narration and appreciation of fact, facts in assessment year 2020-21 is treated as "lead" case. 2. Facts in brief are that assessee is a Private Limited Company engaged in business of operating a Hospital. The assessee-company was incorporating in January, 2019 and set up a Hospital. Assessment year 2020-21 was the first year of operation. The assessee-company filed its Return of Income (ROI in short) for assessment year 2020-21 on 11.01.2021 declaring income at Rs.2.76 crores. The assessee while filing its ROI opted for benefit of lower taxation @ 22% as provided in Section 115BAA of the Act. The return of assessee was processed by Centralized Processing Centre (CPC for short) Bengaluru vide intimation under section 143(1) of the Act on 18.12.2021. The CPC while processing the return of assessee calculated / taxed the assessee under normal provision and computed tax liability @ 30% instead of @ 22%, The return of income was accepted without any variation. 3. Aggrieved by the action of assessing officer/ CPC, the assessee filed appeal before Ld. CIT(A). Before NFAC/Ld. CIT(A) the assessee in its statement of fact, con....
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....n specified Section 115BAA and such conditions are not fulfilled by not furnishing Form10IC before due date of furnishing return under section 139(1). In return of income, assessee has not stated whether turnover in the previous year 2017- 18 is exceeded Rs.400 crores or not. Thus, the assessing officer CPC taken rate @ 30% in the intimation under section 143(1). On such observation, the ld. CIT(A) upheld the action of Assessing Officer. 6. On specific ground with regard to claim lower tax rate, the Ld. CIT(A) in para-7 of its order again accepted that assessee adopted for benefit of lower taxation @ 22% under section 115BAA. It was noted that the assessee accepted that Form10IC has not been furnished on or before specific date under section 139(1) for filing return of income for assessment year 2020-21 for claiming rate of tax as per said provision of Section 115BBA. The assessee has not stated whether total turnover / gross receipt in the previous year, i.e., 2017-18 exceeded Rs.400 crores or not. Therefore, the Assessing Officer has taken tax rate @ 30% applicable for domestic company, having turnover more than Rs.400 crores. On the basis of such observation, the Ld. CIT(A) h....
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.... of ITR as emanated from assessment year 2022-23. The CPC / Assessing Officer processed ITR without showing show cause notice computed tax liability @ 30% instead of @ 22%. No reason is specified nor any opportunity to represent against such adjustment was given to assessee. 8. The ld AR for the assessee submits that Form 10IC does not contain a meticulous detail, either of activities or various statutory requirement for claiming different kind of benefit, rather it contains for ordinary information about the total turnover less than Rs.400 crores, which is to be signed by the director of the assessee only. The Ld. AR for the assessee submits that at the time of filing of return of income, the Form-10IC as required under Rule 21AE if the IT Rules, 1962 was to be signed by the Director of the assessee-company only and not by the Auditor for the other statutory authority, like Audit Report etc. Before Ld. CIT(A), the assessee filed a very detailed submission and objected against taxing @ 30%. The NFAC/Ld. CIT(A) in its order accepted that assessee has opted for taxation under section 115BAA. The Ld. AR for the assessee submits that filing of Form10IC is mere formality for requirem....
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....iling lower taxation @ 22% under section 115BAA. The Ld. Sr-DR for the Revenue submits that the assessee is supposed to follow the prescribed procedure and to make claim as per law. The assessee was requires to file Form-10IC before filing ROI. The Ld. Sr-DR for the Revenue submits that Ld. CIT(A) in exercising its co-terminus jurisdiction accepted alternative plea of assessee and directed the CPC / Assessing Officer to tax @ 25% as total turnover of assessee was not exceeding Rs.400 crores in previous year. 12. The Ld. Sr-DR for the Revenue by referring the provision of Section 143(1) submits that CPC / Assessing Officer was well within his jurisdiction the process of return and determined the tax, interest and fee on the basis of total income computed under clause-1(a) of same section and there is no ambiguity in the intimation issued by CPC / Assessing Officer. The CPC / Assessing Officer has made adjustment on the basis of material placed while filing return of income and no show cause was required in computing proper tax. As the CPC / Assessing Officer have not made any disallowance or addition except with computing proper tax rate on the basis of return of income filed by ....