CPC Cannot Deny Section 115BAB Tax Rate Without Hearing: ITAT Ahmedabad

GFCL EV Products Ltd Vs ACIT (ITAT Ahmedabad)

Assessee, a new manufacturing company, filed return for A.Y. 2023-24 opting for concessional 22% tax rate u/s 115BAB, as it had already exercised the option by filing Form 10ID for A.Y. 2022-23. However, CPC while processing u/s 143(1) computed tax at 30%, stating that Assessee had not opted for 115BAB. CIT(A) upheld CPC’s action holding that manufacturing had not commenced in F.Y. 2022-23, hence the condition of s.115BAB(2)(a) was not met, & that no prior intimation was required since there was no variation in total income.

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