Sarla Holdings Private Limited Vs PCIT (Delhi High Court)
Delhi High Court held that delay in filing Form 10-IC couldn’t be condoned as condition of opting for availing lower taxation under section 115BAA of the Income Tax Act in return is not satisfied. Accordingly, petition is dismissed.
Facts- The petitioner has filed the present petition, inter alia, impugning the order dated 29.11.2023 passed by the Principal Commissioner of Income Tax, Delhi – 07 rejecting the petitioner’s application for revision of the assessment order dated 21.09.2022 passed by the Assessment Unit u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 in respect of Assessment Year [AY] 2020-21.
Read Supreme Court Judgment in this case: SC Upholds Rejection of 115BAA Claim for Failure to Exercise Option in Return
The petitioner is essentially aggrieved by the denial of the benefit of paying tax at lower rate in terms of Section 115BAA of the Act, which was introduced by the virtue of Taxation Laws (Amendment) Act, 2019 with effect from 01.04.2020. The petitioner had not opted for paying tax at a lower rate as it had not indicated so in the affirmative against the requisite box in its return. The petitioner claimed that the same was an inadvertent error and accordingly, filed its revised return. However, the respondents have not accepted the change in option and this led the petitioner to file the present petition.
