TaxTMI 
TaxTMI 
2026 (10) TMI 164
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....r the Assessment Year 2021-22. The assessee has principally challenged the denial of the concessional rate of tax under section 115BAA and the consequential computation of its tax liability at the rate of 30% instead of 22%, besides applicable surcharge and cess. 2. The relevant facts are that the assessee is a domestic company engaged in the business of readymade garments. It filed its return of income in Form ITR-6 on 14.12.2021, declaring a total income of Rs. 79,31,670. In Part A-GEN of the return, against the column requiring the assessee to specify whether it had opted for taxation under section 115BA, section 115BAA or section 115BAB, the assessee expressly selected section 115BAA and computed its tax liability by applying the con....
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....ditions prescribed therein stood fulfilled. Since the assessee had filed its return within the prescribed due date, had opted for section 115BAA in Part A-GEN of ITR-6 and had furnished Form No. 10-IC much before 31.01.2024, there remained no legal basis for denying the concessional rate of tax. The learned Departmental Representative, on the other hand, relied upon the orders of the authorities below. 5. We have heard the rival submissions and examined the material placed before us. Section 115BAA provides for taxation of the total income of a domestic company at the rate of 22%, subject to fulfilment of the conditions stipulated therein. Sub-section (5) provides that the option is to be exercised in the prescribed manner on or before t....
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....uch before the extended date stipulated by the CBDT. Thus, the delay in furnishing Form No. 10-IC stood expressly condoned, and it could no longer operate as a legal impediment to the assessee's substantive entitlement under section 115BAA. 8. It is also significant that Form No. 10-IC had been electronically furnished by the assessee on 10.09.2022, whereas the return was processed under section 143(1) subsequently on 11.11.2022. Thus, even on the date of processing, the prescribed Form was already available on the Departmental portal. Thereafter, CBDT Circular No. 19/2023 expressly condoned the delay in furnishing such Form for Assessment Year 2021-22 where the stipulated conditions stood fulfilled. The effect of such condonation is tha....