TaxTMI 
TaxTMI 
2025 (11) TMI 568
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....Centre, Delhi ["learned CIT(A)"], which in turn arose from the order passed under section 154 of the Act, for the assessment year 2017-18. 2. In this appeal, the assessee has raised the following grounds: - "1. In law and in facts and circumstances of the Appellant's case, the learned Commissioner of Income-tax (Appeals) has erred in points of law and facts. 2. In law and in facts and circumstances of the Appellant's case, the learned Commissioner of Income-tax (Appeals) has grossly erred in dismissing the ground of the appellant for charging tax @30% instead of @29% vide the order dtd. 22.03.2024 passed u/s 154 of IT Act. 3. In law and in facts and circumstances of the Appellant's case, the learned....
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....vide order dated 22.03.2024 held that the tax is chargeable @ 30% instead of 29% and accordingly computed the total tax demand along with interest leviable under section 234B and section 234C of the Act. 5. In its appeal before the learned CIT(A) against the order passed under section 154 of the Act, the assessee submitted that, as per the Finance Act, 2017, the tax is payable @ 29% if the turnover of the domestic company is less than Rs. 5 crore during the previous year 2014-15. The assessee further submitted that, since it was incorporated on 02.08.2016, its turnover for the previous year, 2014-15, was Rs. Nil, and hence, the tax rate applicable for the year under consideration is 29%. 6. The learned CIT(A), vide impugned order, dis....
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.... on record. In the present case, there is no dispute regarding the fact that the assessee company was incorporated on 02.08.2016. Since the income of the assessee for the year under consideration was taxed @ 29% vide order dated 18.12.2019 passed under section 143(3), the AO passed the rectification order under section 154 of the Act levying tax @ 30%. It is the plea of the assessee that, as per the provision of the First Schedule to the Finance Act, 2017, in case of a domestic company, the total income shall be chargeable to tax @29% where the turnover in the previous year 2014-15 does not exceed Rs. 5 crore. Thus, as per the assessee, since it was incorporated only on 02.08.2016, its turnover for the previous year 2014-15 was Rs. Nil, and....
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....ot find any merit in the submission of the assessee or the analogy drawn during the hearing, as in the present case, the assessee, being the juridical person, came into existence only on the date of its incorporation, i.e. 02.08.2016, falling within the previous year 2016-17. Therefore, there can be no question of the assessee having a turnover or gross receipts in the previous year 2014-15, i.e., prior to its coming into existence or incorporation. Accepting the assessee's plea is similar to expecting an unborn child to have an income. Therefore, we are of the considered view that the provisions of clause (i) of Paragraph E of the First Schedule to the Finance Act, 2017, prescribing the tax rate of 29%, are only applicable in case of a dom....