Case Law Details
PCIT Vs KGY Glass Industries (P) Ltd (Gujarat High Court)
Benefit For Concessional Tax Rate On Account Of Technical Glitch In Uploading Of Form 10IC Cannot Be Denied
In a recent judgment, the Gujarat High Court addressed the issue of whether a taxpayer could be denied the benefit of a concessional tax rate under section 115BAA of the Income Tax Act due to a technical glitch in filing Form 10-IC for the assessment year 2020-21. The case of PCIT Vs KGY Glass Industries (P) Ltd highlights the importance of procedural compliance and the consequences of a failure to adhere to tax-related deadlines.
Background of the Case: PCIT Vs KGY Glass Industries (P) Ltd is a case that revolves around the eligibility of a domestic company in the textile business to avail the benefit of being taxed under Section 115BAA of the Income Tax Act. This section offers a concessional tax rate of twenty-two percent, provided certain conditions are met.
Form 10-IC Requirement: As per sub-section (5) of Section 115BAA of the Act, read with Rule 21AE of the Income-Tax Rules, 1962, eligible companies are required to submit Form 10-IC electronically on or before the due date of filing the return of income under section 139(1) of the Act. Failure to comply with this requirement results in the denial of the concessional tax rate.
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