Kanoria Energy And Infrastructure Limited Vs Chief Commissioner of Income Tax (CCIT) (Rajasthan High Court)
The Rajasthan High Court allowed the writ petition filed by Kanoria Energy and Infrastructure Limited challenging the order dated 22.12.2025 rejecting its application for condonation of delay in filing Form No. 10-IC for Assessment Year 2020–21 under Section 119(2)(b) of the Income Tax Act, 1961.
The petitioner, a domestic company engaged in manufacturing asbestos cement pressure pipes and roofing sheets, had filed its return of income for AY 2020–21 on 09.01.2021 within the extended due date. In the return filed in Form ITR-6, the company declared income of ₹5,21,66,960 and opted for taxation under Section 115BAA at the concessional tax rate of 22%. However, Form No. 10-IC, prescribed under Rule 21AE for exercising the option, was not filed along with the return.
While processing the return under Section 143(1), the Centralised Processing Centre applied the normal tax rate instead of the concessional rate under Section 115BAA, resulting in a tax demand. The petitioner challenged the intimation before the National Faceless Appeal Centre, which accepted that the petitioner had exercised the option under Section 115BAA and directed the Assessing Officer to apply the concessional rate. Subsequently, the Income Tax Appellate Tribunal remanded the matter to the Assessing Officer for fresh adjudication on legal issues without disturbing the finding relating to the petitioner’s exercise of option under Section 115BAA.
