Rectification Invalid as Tax Rate Issue Debatable: ITAT Rejects 60% Section 115BBE Tax

ITO Vs Udayan Mandavia (ITAT Ahmedabad) The ITAT Ahmedabad dismissed the Department’s appeal and upheld the CIT(A)’s order quashing rectification under Section 154, wherein the Assessing Officer had increased the tax rate on addition under Section 69A from 30% to 60% by applying amended Section 115BBE. The Tribunal held that the applicability of the amended 60% rate is a debatable issue and supported by consistent judicial precedents stating that the amendment is prospective and applicable only from 01.04.2017 onwards, not to earlier transactions falling in A.Y. 2017–18. Since rectificat...