2026 (8) TMI 1659

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....'ble CIT(A) has erred in law as well as on facts in confirming denial of concessional rate of tax @22% under section 115BAA of the Income-tax Act, 1961 and assessing the appellant at normal rate despite the appellant having validly exercised option under section 115BAA by filing Form No. 10-IC and being otherwise eligible for taxation under the said section. Appellant craves leave to add, amend or withdraw any ground of appeal." 2. Brief facts of the case are as under:- The assessee is a domestic company. For the year under consideration, the assessee filed its return of income on 31/12/2024, declaring its income and computing its tax liability by applying the concessional rate of tax of 22% u/s 115BAA of the Act. The assesse....

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....ng AY 2020-21. It was submitted that once the option had been validly exercised, the same continued to apply to subsequent assessment years by virtue of section 115BAA(5) of the Act and, therefore, no fresh exercise of option was required for AY 2024-25. 4.1. It was further submitted that the assessee had duly disclosed in its return of income for AY 2024-25 that the option u/s 115BAA stood exercised and had also furnished the relevant particulars of Form No. 10-IC. The said Form No. 10-IC dated 28/05/2021 continued to remain on record and had neither been withdrawn nor held to be invalid by any competent authority. 4.2. The Ld. AR further submitted that, while processing the return for AY 2022-23, the CPC itself had accepted the asse....

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.... option so exercised was not a fresh option claimed for the year under consideration but was an option which, according to the assessee, continued to operate in terms of section 115BAA(5) of the Act. 5.2. Section 115BAA(5) specifically provides that an option once exercised in the prescribed manner shall apply to subsequent assessment years. Thus, where the option has been validly exercised and continues to remain in force, the statutory provision itself contemplates its application to subsequent assessment years. The assessee placed on record material showing that the very same option was accepted while processing its return for AY 2022-23 and the benefit of the concessional rate u/s 115BAA was granted. 5.3. We further find that the ....