Indo British Garments Pvt. Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that benefit of section 115AAB of the Income Tax Act availed in the preceding year cannot be denied in subsequent year on the reason of non-filing of prescribed Form 10IC. Accordingly, appeal allowed.
Facts- The assessee company is engaged in the business of manufacturing of garments. The company also has branch operations in Johannesburg, South The assessee filed its return of income for AY 2021-22 electronically on 11.03.2022, declaring total income at INR 2,18,68,649/-. An intimation u/s 143(1) of the Act was issued by the Centralized Processing Center (“CPC”) on 17.10.2022 in which the total income returned by the assessee was increased from INR 63,48,872/- to INR 75,74,915/-. The tax liability was also increased as the CPC while processing the return of income, has denied the benefit of provision of section 115BAA of the Act.
CIT(A) upheld the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that Once the assessee opted for taxation under section 115BAA of the Act and exercised, there can be no reason to deny the benefit in the years subsequent to the AYs in which the option was first exercised. Where the statute itself provides for incapacity of the assessee to withdraw the exercise of option, the requirement of filing Form 10IC in the subsequent year, in our considered view becomes an irrelevant consideration.
