SAP Parts Private Limited Vs ITO (ITAT Pune)
115BA Form Not Filed – CPC Taxed @30%; Tribunal Allows Fresh Examination- If FY 2018-19 Turnover < ₹400 Cr, Apply 25% Rate: ITAT Remands
Assessee, a private limited company, appealed against the rectification order u/s 154 dated 11.04.2023 whereby CPC denied concessional tax rate of 25% & applied 30% on the ground that Form prescribed for claiming benefit u/s 115BA had not been furnished. Assessee confined its argument to Ground No.1 before ITAT, giving up Ground No.2 as “not pressed”. Assessee submitted that its turnover for FY 2018-19 did not exceed ₹400 crore & therefore, by virtue of Finance Bill 2021 para (e), the applicable corporate tax rate should be 25% for domestic companies. It produced audited financials of FY 2018-19 in support.
Tribunal held that if turnover during FY 2018-19 is indeed below ₹400 crore, the assessee is entitled to 25% tax rate. It restored the matter to the jurisdictional AO for verification of turnover & directed that if the assessee’s contention is correct, tax must be computed at 25%. AO shall grant proper opportunity to the assessee. Appeal partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT PUNE
