TaxTMI 
TaxTMI 
2025 (4) TMI 2017
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....ective ground of appeal in this appeal of assessee is against confirming the denial of benefit of concessional rate of tax as per Section 115BAB of the Income-tax Act, 1961 (hereinafter "the Act") in the intimation notice u/s. 143(1) by CPC. 3. The assessee-company was incorporated on 05.01.2020 under the Companies Act, 2013 and started business manufacturing of parts and accessories of motor vehicles and engines from 03.01.2023. The assessee filed its return of income at Nil for A.Y 2022-23, but did not file Form-10ID. Upon the commencement of production, the assessee has filed its return of income and opted for concessional rate of tax by filing Form-10ID. However, the CPC, Bengaluru, in its intimation u/s. 143(1) of the Act, disallowe....
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....imed concessional rate of tax in the first year of return for A.Y 2022-23 and has not filed Form-10ID in that year. We find that the assessee as filled first return after incorporation for A.Y 2022-23, with all particulars at nil without opting for 115BAB but has claimed concessional year in the year relevant to first year of production in return filed for A.Y 2023-24 along with filing Form-10ID, for concessional rate tax. Similar issue has come before Hon'ble ITAT, Hyderabad bench in the case of Granules CZRO Pvt. Ltd. vs. ITO in ITA No.706/Hyd/2024 dated 15.10.2024, and the Hon'ble tribunal has held as under : "From the perusal of Form 10ID, it is essential that the said Form 10ID is required to be filed along with the return of ....
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....enced its activities, the assessee was required to file the certificate showing the commencement of business activities and manufacturing activities, however, the assessee is prohibited to file the Form 10ID in the subsequent year, when it has actually started manufacturing its article or thing. In view of the above harmonious interpretation, reconciliation is required and in our view, though the manufacturing activity has not been commenced for the assessment year in question, however as and when the assessee started its manufacturing activity, this should be factored in and taken into account by the Revenue for the purpose of giving benefit of section 115BAB of the Act. In view of the above, though, we are of the opinion that the assessee....