Axe Bpo Services Private Limited Vs Director (ITA-1) (Madras High Court)
The Madras High Court considered a writ petition challenging an order dated 29.11.2023 passed under Section 119(2)(b) of the Income-tax Act, 1961, rejecting the petitioner’s application seeking condonation of delay in filing Form 10-IC for Assessment Year 2020-21.
The petitioner, Axe BPO Services Private Limited, engaged in providing information technology-related services, filed its income tax return for Assessment Year 2020-21 declaring total income of ₹1,92,06,950 and paid tax at the concessional rate of 22% after opting for taxation under Section 115BAA. In exercising this option, the petitioner did not claim deductions or set-offs prohibited under Section 115BAA(2). However, it failed to file Form 10-IC within the prescribed time, resulting in denial of the concessional tax regime and computation of tax at 30%. The petitioner had indicated in its return itself that it had opted for taxation under Section 115BAA. Subsequently, an intimation under Section 143(1) raised a tax demand at 30%, though it did not expressly state that the higher rate was due to non-filing of Form 10-IC. The petitioner also filed a rectification application reiterating that it had opted for taxation under Section 115BAA, but the issue remained unresolved. Thereafter, the petitioner filed grievance petitions and ultimately sought condonation of delay under Section 119(2)(b), which was rejected on the ground that no reasonable cause or genuine hardship had been established.
