TaxTMI 
TaxTMI 
2025 (11) TMI 650
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....ome Tax Act, 1961 ('Act'). 1) Ground 1-Ground pertaining to the denial of the eligibility under section 115BAB of the Act I. In the facts and circumstances of the case and in law, the learned CIT(A) erred in not appreciating that the main condition stipulated in section 115BAB is required to be complied is that the Company should have commenced manufacturing or production of an article or thing on or before the 31 day of March. 2024 viz. in the subsequent year. II. In the facts and circumstances of the case and in law, the learned CIT(A) erred in observing and concluding that the appellant has not fulfilled the condition stipulated in section 115BAB that it should have commenced manufacturing or production of an article or thing on or before the 31 day of March, 2024, when, in fact, the appellant had started production before 31 March.2024. The Appellant prays that the Id. AO be directed to hold that the appellant is eligible under section 115BAB of the act. 2) Ground 2-Ground of appeal pertaining to the denial of tax rate under section 115BAB of the Act. In the facts and circumstances of the case and in law, the learned....
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....ormal provisions instead of the concessional rate of 22% as per section 115BAB of the Act, on the ground that the assessee had not exercised the option under that section. Aggrieved by the said intimation, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) [CIT(A)] and contended that the CPC had erred in ignoring the option already exercised under section 115BAB for the preceding assessment year and in not granting the benefit of lower tax rate as applicable to new manufacturing companies. 4. In the appellate proceedings before CIT(Appeals), the assessee submitted that it had been incorporated on 08.12.2021 and had duly exercised the option under section 115BAB for A.Y. 2022-23 by filing Form No. 10ID on 31.10.2022, i.e., within the due date prescribed under section 139(1) of the Act. The assessee contended that, once exercised, the option under section 115BAB of the Act continues for subsequent assessment years and that there is no requirement for filing Form No. 10ID again. The assessee further submitted that in the return of income filed for A.Y. 2023-24, the option for taxation under section 115BAB was clearly indicated in Part-A, General Inform....
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..... Consequently, the appeal filed by the assessee was dismissed. 5. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. 6. Before us, the learned counsel for the assessee submitted that the CIT(A) had erred both in law and on facts in denying the benefit of concessional tax rate under section 115BAB of the Act and in upholding the action of the CPC in computing tax at 30% under section 143(1). The ld. counsel for the assessee contended that the assessee company had duly exercised the option under section 115BAB for and from Assessment Year 2022-23 by filing Form No. 10ID electronically on 31.10.2022, which was well within the prescribed time under section 139(1). Once such an option is exercised, it continues for all subsequent assessment years and there is no statutory requirement to file Form No. 10ID afresh every year. Accordingly, for A.Y. 2023-24, the assessee continued to be governed by the new tax regime under section 115BAB of the Act, and the same was clearly reflected in the return of income filed in Form ITR-6, Part A - General, clause (e), wherein the assessee had specifically indicated that it had opt....
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....which allows the benefit until 31.03.2024. The learned counsel also brought to the notice of the Bench that for A.Y. 2022-23, the CPC itself had accepted the assessee's option under section 115BAB while processing the return under section 143(1) of the Act, as is evident from the intimation for that year. 7. In response, Ld. DR placed reliance on the observations made by CIT(Appeals) in the appellate order. 8. We have carefully considered the rival contentions and perused the material available on record. It is an admitted position that the assessee had duly exercised the option under section 115BAB of the Act for the immediately preceding assessment year 2022-23 by filing Form No. 10ID within the prescribed time. Once the option under section 115BAB is exercised, it continues to apply for all subsequent assessment years, and there is no requirement under the Act or the Rules to file Form No. 10ID again for each year. Therefore, for the year under consideration, being the second year of claim, the assessee was eligible to continue under the concessional tax regime prescribed under section 115BAB of the Act. We further note that the issue as to whether the assessee had actuall....