Finecab Wires & Cables Pvt. Ltd. Vs DCIT (ITAT Hyderabad)
ITAT Hyderabad directed to reconsider claim of concessional tax rate benefit u/s. 115BAA of the Income Tax Act since Form 10-IC filed belatedly but was filed before cut-off date i.e. 30.06.2022 as prescribed by CBDT Circular No. 6/2022. Accordingly, appeal allowed for statistical purpose.
Facts- The assessee is a company, filed its return of income for the Assessment Year 2020–21 on 31.12.2020 u/s. 139(1) of the Income Tax Act, 1961 declaring total income of Rs.2,64,79,340/-, opting for concessional tax rate u/s. 115BAA of the Act. However, while processing the return u/s. 143(1) of the Act on 18.12.2021, the Centralized Processing Centre denied the benefit of concessional tax rate u/s. 115BAA on the ground that the assessee had not filed Form 10-IC electronically within the prescribed time.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that in the present case, though the assessee has not filed such a condonation petition before the CBDT, the factual matrix is otherwise similar. The assessee had opted for the concessional regime in the return of income, filed Form 10-IC for A.Y. 2021–22 before the cut-off date of 30.06.2022 prescribed in CBDT Circular No. 6/2022. Thus, we are inclined to follow the ratio laid down by the Hon’ble Gujarat High Court in the case of Surat Smart City Development Ltd. and restore the matter to the file of the Ld. AO with the directions that the assessee is at liberty to file a fresh Form 10-IC for A.Y. 2020–21 along with a petition for condonation of delay under section 119 of the Act before the CBDT. The Ld. AO shall consider the claim of the assessee under section 115BAA only after the CBDT has adjudicated upon the condonation application. Subject to such approval, the concessional tax rate shall be allowed in accordance with law. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.
