Mahalaxmi Asphalt Private Limited Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad considered whether a domestic company could be denied the concessional tax regime under Section 115BAA merely because Form 10-IC was not filed electronically along with its return of income. Mahalaxmi Asphalt Private Limited filed its return for AY 2020-21 on 29.12.2020 declaring total income of Rs.25,89,450/- and opted for taxation under Section 115BAA. The assessee had selected the Section 115BAA regime both in its return of income and in the Tax Audit Report in Form 3CD. However, CPC, Bengaluru processed the return at the regular rate instead of the concessional rate and raised a tax demand of Rs.1,97,000/-, citing non-filing of the prescribed form. The resultant intimation under Section 143(1) was dated 14.12.2022.
The assessee challenged the adjustment before the CIT(A), but its appeal was rejected. Before the Tribunal, the assessee contended that there was no dispute about its status as a domestic company or its substantive eligibility for Section 115BAA. The only objection was that Form 10-IC had not been electronically furnished before the due date under Section 139(1). According to the assessee, Form 10-IC could not be uploaded because of a technical error on the ITBA portal, and AY 2020-21 was the first year in which it was seeking the benefit. The assessee subsequently furnished Form 10-IC on 29.01.2022 during appellate proceedings.
