TaxTMI 
TaxTMI 
2025 (3) TMI 1677
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....sidering the facts and circumstances of each of the grounds. Therefore, the order passed under section 250 of the income-tax Act, 1961 ('the Act') in accordance with the e-Appeal Scheme, 2023 notified by the Central Board of Direct Taxes, be struck down as invalid, as the order is bad in law and on facts. 2 The Ld. JCIT(Appeals) erred in denying the Appellant's claim for concessional rate of taxes 2.1. The Ld. JCIT(Appeals) and the Central Processing Centre ('CPC' or 'Ld. AO') erred in law and in facts in non-application of the concessional rates of taxes claimed in the return of income under section 115BAA of the Act. 2.2. The Ld. JCIT(Appeals) erred in law and in fact in denying the concessional rate of tax under section 115BAA of the Act for the AY 2023-24 without taking into consideration the fact that the concessional rate of tax under section 115BAA of the Act have been applied in the intimations issued prior to AY 2023-24 and the same has been accepted by the Ld. AO as well. 2.3. The Ld. JCIT(Appeals) erred in law and in facts in not appreciating that the form 10IC for AY 2020-21 is filed within the due date pre....
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....grounds as also all reliefs consequential thereto. 5.2. The Appellant craves leave to add to or alter, by deletion, substitution or otherwise, any or all of the above grounds of appeal, at any time before or during the hearing of the appeal. 3. The brief facts of the case are that the assessee is engaged in the business of providing software development services ('SWD'), information technology enabled services (ITeS') and marketing support services('MSS') to its associated enterprises ('AE'). For the assessment year 2023-24, the assessee company filed its return of income u/s 139(1) of the Act on 28.11.2023 by declaring total income of Rs. 367,27,32,210/-. As the income of the company is taxable @ 25.17% u/s 115BAA of the Act amounting to Rs. 92,43,53,243/- and the total tax paid by the company in the form of advance tax, TDS and TCS amounting to Rs. 101,02,90,762/- and accordingly the assessee company claimed a refund of Rs. 8,59,37,520/- along with interest u/s 244A thereon in its return of income. Thereafter, the return of income was processed by the ld. Deputy Director of Income Tax, CPC, Bengaluru and accordingly the intimation u/s 143(1....
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....is totally dependent on the facts of AY 2020-21. Further, he observed that this office is not empowered to condone the delay in filing the ITR for 44 days to allow the concessional rate as per the form No. 10IC submitted by the assessee. 4. With regard to grounds of appeal related to surcharge and interest, ld. Addl/JCIT(A) observed that all these grounds are consequential in nature. 6. Aggrieved by the order of ld. Addl./JCIT(A),-4 Kolkata the assessee has filed the present appeal before this Tribunal. The assessee has also filed a paper book comprising 195 pages enclosing therein copy of return of income, statement of computation of income and copy of Form 10IC as well as copy of statement/submissions/orders as submitted before the ld. Addl/JCIT(A). 7. Before us, the ld. A.R. of the assessee vehemently submitted that the form No. 10IC has been filed for the assessment year 2020-21 for the first time on 30.3.2021, which is accepted by the AO during the assessment proceedings for the assessment years 2020-21 and 2021-22. Further, the concessional tax rate was also accepted by the AO/CPC for the Asst. year 2022-23 and accordingly CPC, Bengaluru erred in rejecting the ....
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....or the Asst. year 2023-24, the assessee has claimed in the ITR-6 the tax rate @ 22% u/s 115BAA of the Act whereas the CPC has computed @ 30% by ignoring the form No.10IC filed as above. We take note of the fact that for the assessment year 2020-21, an assessment order has been passed by the AO u/s 143(3) r.w.s. 144B of the Act on 26.9.2022 by accepting the concessional tax rate under new regime based onthe form 10IC filed on 30.3.2021. Further, ongoing through the assessment order passed u/s 143(3) r.w.s. 144B of the Act dated 22.12.2022 for the AY 2021-22, again the AO has accepted the concessional tax rate under new regime as per form 10IC filed on 30.3.2021. We also take note of the fact that for the AY 2022-23, the CPC Bangalore has also accepted the Form 10IC filed on 30.3.2021 and allowed the concessional tax rate of 22% u/s 115BAA of the Act. 10.1 The assessee company accordingly while filing the return of income for the AY 2023-24 has opted for taxation u/s 115BAA of the Act in (e) of "filing status" in "Part A-GEN" of the form of return of income ITR-6. Therefore, we find no wrong in claiming a concessional tax rate for the Asst. year 2023-24 especially when the revenue....
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....fied Act". (See section (3)(b) r.w.s. 2(1)(b)(ii) of TOLA). Thus, we are of the opinion that the TOLA extended the deadlines for certain actions under specified Acts that were due during the COVID-19 period. Section 3(1) of TOLA uses "any" to indicate that the relaxation applies to all actions due between 20-03-2020 and 31-03-2021. Therefore, we find force in the contentions of the assessee company. 10.4 Under the similar facts and circumstances, the coordinate Bench of Mumbai Tribunal in the case Suminter India Organics (P.) Ltd. V. Deputy Commissioner of Income Tax, reported in [2022] 140 Taxmann.com 591 (Mum. Trib.), wherein it is held as under: 5. While Shri Sridharan, learned senior counsel for the assessee, has made elaborate submissions on various facets with respect to the scheme of section 115BAA, implications of the provisions of the Taxation and Other Laws (Relaxations and Amendments of Certain Provisions) Act 2020 [hereinafter referred to as 'the TOLA'], and several other nuances of law, for the reasons we will set out in a short while, it is sufficient to take note of his basic plea- i.e. in terms of the requirement of section 3(1)(b) of TOLA, the t....
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....sional tax regime under section 115BAA was properly exercised, and that the authorities below erred in law and on facts in declining the same. Smt Desai, learned Departmental Representative, submits that this plea was not taken up before the first appellate authority, and we must not, therefore, adjudicate on the same on merits. Without prejudice to this line of submission, it is reiterated that in terms of the provisions of section 115BAA(5), "nothing contained in this section shall apply unless the option is exercised by the person in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the 1st day of April 2020 and such option once exercised shall apply to subsequent assessment years". Our attention is then invited to Rule 21AE, prescribing the manner in which this option is to be exercised by the filing of Form 10IC. It is pointed out that the extended time limit for submission of return under section 139(1) was only up to 15th February 2021, whereas the form 10IC was submitted on 31st March 2021. Learned Senior Departmental....
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.... [see section 3(1)(b) read with section 2(1)(b)(ii) of TOLA]. Section 2(1)(b)(ii) provides that the Income-tax Act, 1961 is one of the "specified Acts" under the TOLA, and section 3(1)(b) of TOLA, inter alia, provides as follows: Relaxation of certain provisions of specified Act. 3. (1) Where, any time-limit has been specified in, or prescribed or notified under, the specified Act which falls during the period from the 20th day of March, 2020 to the 31st day of December, 2020, or such other date after the 31st day of December, 2020, as the Central Government may, by notification, specify in this behalf, for the completion or compliance of such action as- ** ** &....
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....elaxation by clause (i) of the third proviso to section 3(1), which provides as follows: Provided also that where the specified Act is the Income-tax Act, 1961 (43 of 1961) and the compliance relates to- (i) furnishing of return under section 139 thereof, for the assessment year commencing on the- (a) 1st day of April, 2019, the provision of this sub-section shall have the effect as if for the figures, letters and words "31st day of March, 2021", the figures, letters and words "30th day of September, 2020" had been substituted; (b) 1st day of April, 2020, the provision of this sub-section shall have the effect as if for the figures, letters and words "31st day of March, 2021", the figures, letters and words "30th day of November, 2020" had been substituted; 8. A proviso, as is the well settled position, carves out an exception from the scope of the main section. The normal function of a proviso is to qualify something out of an enactment that, but for the proviso, would be within the purview of the enactment. As stated by Justice Lush, in the classic case of Mullins v. Treasurer of Surrey [1880] 5 QBD 70, "when one finds proviso to a sec....