TaxTMI 
TaxTMI 
2026 (8) TMI 1464
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....1) dated 26.05.2025 passed by the Ld. CIT(A) u/s 250 of the Act which is hereinafter referred as the "Impugned Order". The Relevant Assessment Year is 2024-25 and the corresponding Previous Period is from 01/04/2023 to 31/03/2024. 2. FACTUAL MATRIX 2.1 That as & by way of an Intimation Order passed u/s 143(1) of the Act, the Assessee's claim u/s 115BAA of the Act was not considered despite the same was claimed in the Income Tax Return filed on 15.11.2024. In the Income Tax Return total Income was at Rs 13,90,80,470/- the Tax liability as provided by Tax payer was at Rs 3,52,30,284/- however the same was computed at Rs 4,89,14,776/-. Net Taxable amount was at Rs 1,15,38,490/-. That the aforesaid Intimation Order bears Demand Reference ....
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....023-24. Section 115BAA of the Income Tax Act, 1961 offers a reduced tax rate for domestic companies subject to the conditions as per Rule 21AE (1) of the Income Tax Rules which allows a domestic company to benefit from lower tax rates by filing Form 10 IC. Form 10 IC must be submitted by the 'due date' for filing the company's return for the previous year. If a company files form 10 IC after the due date, the option under Section 115BAA will be treated as not exercised. Hence, the company will not be eligible for the concessional tax rate for that assessment year. In order to opt for concessional tax regime under Section 115BAA in the subsequent year, the appellant has to exercise the option afresh in the subsequent year by fili....
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....involved was 2020-21 which was the very first Assessment Year and due to the fault on the part of the System, the assessee had not filed the Form alongwith the return of income. But in the present case, the assessment year is 2024-25 and there was no fault in the system and the appellant could have filed Form 10IC for the assessment year 2024-25 before the due date of filing of return of income. Form 10 IC already filed for the assessment year 2023-24 was late and the appellant was considered as not eligible for concessional tax rate u/s 115BAA on the basis of that Form 10IC filed on 28-12-2023." "5.5 In view of the foregoing, I am of the considered view that the assessee didn't validly exercise the option under Section 115BAA ....
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....e circumstances of the case and in law, the Ld. AO, CPC has erred in denying benefit of concessional rate of taxation u/s. 115BAA of the Act without issuing any Notice for proposed adjustments/modification in tax rates and without assigning any reasons thereof which is against the principles of natural justice and thus, the Intimation u/s. 143(1) of the Act is liable to be quashed and the resultant demand is liable to be deleted. The appellant company craves leave to add, alter, amend or withdraw any of the grounds of appeal." 3 Record of Hearing 3.1 The hearing in the matter took place before this Tribunal on 11.08.2026 when the Ld. AR & on the behalf of the Assessee appeared before us & inter-alia contended that the "Impugn....
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....nishing the return of Income for any Previous Year relevant to the Assessment Year commencing on or after the 1st day of April 2020. No declaration & (or delayed declaration leads to denial of Section 115BAA. The Assessee is in Appeal for AY 2024-2025 & Form No 10IC is on record for this AY 2024-2025. Reliance was placed on (2022) 140 Taxmann.com 223(SC) that Taxing statute must be read & complied literally & strictly particularly so where the assessee is seeking benefit of exemption or deduction provisions. The hearing was over & closed. During the course of hearing reference was made by the Bench to the decision of this Tribunal dt 30.09.2025 in the case of Sanjana Clothing Pvt Ltd. v/s AID CPC Bangaluru ITA Nao:- 841/IND/2024 the copy of....