Tata Autocomp Gotion Green Energy Solutions Private Limited Vs Central Board of Direct Taxes & Ors. (Bombay High Court)
Bombay High Court Quashes CBDT Order on Tax Concession: The Bombay High Court has set aside an order issued by the Central Board of Direct Taxes (CBDT) on December 5, 2023, which denied Tata Autocomp Gotion Green Energy Solutions Private Limited certain tax benefits under Section 115BAB of the Income Tax Act, 1961. The court ruled that the decision was procedurally flawed as it was not signed by the Member who conducted the personal hearing and relied on undisclosed reports from the Field Authorities, thereby violating principles of natural justice.
Tata Autocomp Gotion Green Energy Solutions, a joint venture between Tata Autocomp Systems Ltd. and China-based Hefei Guoxuan High-Tech Power Energy Co. Ltd., had faced delays in its foreign investment due to changes in India’s Foreign Direct Investment (FDI) policy and the COVID-19 pandemic. The company sought a lower corporate tax rate of 15% under Section 115BAB but missed filing Form 10-ID due to procedural delays. Consequently, it applied for condonation of delay under Section 119(2)(b) of the Act. However, the CBDT rejected this request without providing the company access to the Field Authorities’ reports that formed the basis of the decision.
