TaxTMI 
TaxTMI 
2025 (12) TMI 337
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.... 1.1. The intimation issued by the learned Centralised Processing Centre ['CPC' for brevity] under section 143(1) of the Income-tax Act, 1961 ['Act' for brevity] and confirmed by the learned Joint Commissioner of Income-tax, Appeals - 2, Noida ['JCIT(A)' for brevity] is bad in law and liable to be quashed. 1.2. The learned JCIT(A) has erred in passing an unreasoned order without considering all the submissions and/or without appreciating the facts and circumstances of the case of the Appellant and the law applicable. 2. GROUND 2 - GROUNDS RELATING TO NON-COMPLIANCE OF PROCEDURE UNDER SECTION 143(1): 2.1. The learned CPC has erred in issuing intimation under section 143(1) denying the benefit of concessional rate of tax under section 115BAA(1) of the Act and the learned JCIT(A) has erred in sustaining such intimation. 2.2. The learned JCIT(A) has erred in sustaining the denial of benefit of concessional rate of tax in the intimation issued under section 143(1) without appreciating that the impugned adjustment is outside the scope of section 143(1)(a); and 2.3. Without prejudice, the learned CPC has erred i....
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.... 4.1. Without prejudice to the above and in any case, the learned CPC has erred in taxing the Appellant at 30%. 4.2. Assuming without admitting that the denial of concessional tax rate under section 115BAA is correct, the Appellant's total income should be subjected to tax at 25% in accordance with First Schedule to the Finance Act, 2021. 5. GROUND 6 - GROUND RELATING TO ADDITION OF INTEREST UNDER SECTION 234A, 234B AND SECTION 234C: 5.1. The learned JCIT(A) has erred in confirming the interest levied by the learned CPC under section 234A, section 234B and section 234C. On facts and circumstances of the case and law applicable, interest under section 234A, section 234B and section 234C is not leviable. The Appellant denies its liability to pay any interest under section 234A, section 234B and section 234C. The Appellant submits that each of the above grounds/ sub-grounds are independent and without prejudice to one another. The Appellant craves leave to add, alter, vary, omit, substitute, or amend the above grounds of appeal, at any time before or at the time of hearing, of the appeal, so as to enable the Income-tax Appellate Tribunal t....
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....the return u/s 139(1) of the Act. Further, the ld. CIT(A)/NFAC observed that the record indicates that the assessee filed its updated return u/s 139(8A) of the Act on 31.8.2023, which is well beyond the due date u/s 139 of the Act and accordingly as per the provisions of section 115BAA(5) of the Act, once the dead line u/s 139(1) passes, the benefit of concessional rate cannot be availed. 5.1 Further, the ld. CIT(A)/NFAC held that as per Rule 21AE of the I.T. Rules, 1962, Form 10IC must be filed before the due date prescribed u/s 139(1) of the Act, which was not adhered to by the assessee. Since the return was filed after the due date, the benefit of section 115BAA is not available, and accordingly, the CPC had correctly recomputed the tax @ 30% under the normal provisions. 6. Again being aggrieved by the order of the ld. CIT(A)/NFAC, the assessee has filed the present appeal before this Tribunal. The assessee has also filed a paper book comprising 198 pages containing various returns, reports, forms, notices, screenshots, written submissions, and additional submissions along with the case laws relied upon by the assessee. 7. Before us, the ld. A.R. of the assessee vehemen....
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.... this section shall apply unless the option is exercised by the person in the prescribed manner on or before the due date specified under subsection (1) of section 139 of furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the first day of April, 2020 and such option once exercised shall apply to subsequent assessment years: ------------ Provided further that once the option has been exercised or any previous year, it cannot be subsequently withdrawn for the same or any other previous year." Rule 21 AE of the Income Tax Rules, 1962 provides as under: "Rule 21 AE - Form for exercising option under sub-section (5) of section 115BAA (1) the option to be exercised under sub-section (5) of section 115BAA by a person, being a domestic company, shall be in Form No. 10- IC. (2) The form No. 10 - IC shall be furnished electronically either under digital signature or through electronic verification code. (3) The option in form No. 10 - IC shall be furnished on or before the due date specified under sub-section(1) of section 139 for furnishing the return of income for the a....
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....te of filing return of income u/s 139(1) of the Act, there is no requirement under the law to file the Form No.10IC again during the subsequent assessment year on or before the due date of furnishing return. Therefore, we are of the firm view that the form no.10IC filed by the assessee on 1.4.2021 is valid for assessment year 2021-22 even though belatedly filed for AY 2020-21. We are also of the considered opinion that the option was exercised prior to due date provided u/s 139(1) of the Act for filing the return of income for the assessment year 2021-22 and thus, the option for being taxed u/s 115BAA of the Act once exercised shall be applicable perpetually unless there is an alleged non-compliance of conditions laid down in sub-section (2) of section 115BAA of the Act and in our view there is no requirement to file form no.10IC for each assessment year separately. 9.4 Thus, we are of the considered opinion that the form no.10IC filed on 1.4.2021 for the AY 2020-21 will also be treated as valid for AY 2021-22 and subsequent years and the assessee had rightly opted the same in its return of income filed for the assessment year 2021-22 & therefore, the assessee is eligible for be....
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....n for being taxed at a concessional rate on or before the due date of filing return of income under section 139(1); and (b) filing of return of income within the due date as per section 139(1) is not a pre-condition in section 115BAA(5). 3.3. The learned JCIT(A) has erred in not appreciating that; (a) Form No. 10-IC was filed within the due date prescribed under section 139(1) for the year under consideration; (b) filing an updated return for the year under consideration does not imply that Form No. 10-IC was filed beyond the due date; (c) The Appellant had exercised the option to be taxed under section 115BAA for AY 2020-21 and subsequent assessment years (which includes the year under ANICS INA consideration) vide Form No. 10-IC filed on 01.04.2021. The option was thus exercised prior to due date provided under section 139(1) for filing returns for AY 2022-23; (d) the option for being taxed under section 115BAA, once exercised, shall be applicable perpetually unless there is an alleged non-compliance of conditions laid in sub-section (2) of Section 115BAA; and (e) there is no requirement to file Form No. 10-IC for eac....
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....e Income-tax Appellate Tribunal to decide the appeal according to law. 12. In the present appeal, the issue with regard to denial of benefit of concessional tax u/s 115BAA of the Act is already decided in ITA No. 989/Bang/2025 in favour of the assessee and accordingly the same will apply mutatis mutandis to the present grounds of appeal raised by the assessee in this regard and accordingly, the issue on this ground is allowed. 13. Further, with regard to the ground related to adhoc addition of Rs. 17,59,550/- as made by the CPC in the intimation issued u/s 143(1) of the Act for the assessment year 2022-23, we direct the AO to pass an order u/s 154 of the Act as filed by the assessee for the assessment year 2022-23 deleting the adhoc addition of Rs. 17,59,550/- as passed by the CPC for the assessment year 2020-21 as well. The CPC has no jurisdiction to make any adhoc additions while passing an intimation u/s 143(1) of the Act & accordingly it is a clear mistake apparent on the face of the record as per the provisions contained in section 154 of the Act. It is ordered accordingly. 14. In the result, the appeal filed by the assessee in ITA No. 988/Bang/2025 is partly allowed.....
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....ess-1 SOURABH.MAHESHWARICARR OWASIA.COM Email Address-2 Date of incorporation YYYY) 26-D66-2002 Filed u/s (Tick)[Please see instruction) 139(1)- On or Before due date 139(4)- Aftor due date, 139(5)- Revised Return. 92CD-Modified rotum, 139(9A) / 119(2)(b)-After condonation of delay. 139(Ba)-Updated roturn 170A- After order by the tribunal of court or filed in Response to Notice u/s 139(9) 142(1). 148 1530 (D) If rovisad/in response to notice for Defective/Modified, thon onter Receipt No (DD/MM/YYYY) (c) If filad, In response to notice uis 139(8)/142(1)/148/163A/153C or order u/s 119(2)(b). enter Unique Number /Document Identification Number and date of such notice/order, or if filed u/s 920D entor date of advance pricing agreement (d) Residential Status (Tick) Resident Non-Resident Whether the assesse has opted for taxation under section 115BA/115BAA/115BAB7 (applicable on Domestic Company) 115BAA (F) Whether total turnover/ gross rocolpte in the previous year 2018-19 exceeds 400 crore rupees? (Yes/No) (applicable for Domestic Company ) (a) with which India has an agreement referred to in sec 90 (1) or Central Government has Whethe....