Case Law Details
Chola Business Services Ltd. Vs ITO (ITAT Chennai)
In the case of Chola Business Services Ltd. vs. Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Chennai ruled in favor of the assessee, Chola Business Services, regarding the concessional tax rate under Section 115BAA of the Income-tax Act, 1961, for the Assessment Year (AY) 2021-22. The company had filed its return of income declaring a total income of ₹55,49,770 and a refund claim of ₹4,25,390. However, the Centralized Processing Center (CPC), Bengaluru, issued an intimation under Section 143(1) of the Act, calculating the tax at 30%, rather than the 22% concessional rate that the assessee had opted for. The company had filed Form 10IC on 15.12.2020, in compliance with the requirements to avail the concessional rate.
Despite this, the CPC computed the tax at the regular rate of 30%, and the Commissioner of Income Tax (Appeals) upheld this decision, stating that the company had not opted for the concessional tax rate. However, the ITAT found that the CPC’s intimation itself acknowledged the company’s election for the concessional rate. The tribunal noted that the filing of Form 10IC and its acknowledgment by CPC confirmed the company’s eligibility for the concessional tax rate under Section 115BAA. Therefore, the ITAT set aside the CIT(A)’s order and directed the Assessing Officer to compute the tax at the concessional rate, as initially claimed by the company. The appeal was consequently allowed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
Aforesaid appeal filed by the assessee for Assessment Year (AY) 2021-22 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-2, Gurugram [hereinafter “CIT(A)”] dated 23.02.2024 vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) issued by CPC, Bengaluru dated 20.10.2022.
2. The only effective ground in this of appeal of assessee is against confirming the intimation notice issued by CPC, Bengaluru, wherein the CPC has not allowed the concessional rate of tax even though the assessee has opted for concessional rate u/s. 115BAA of the Act and filed the required form within time.
3. The assessee company was incorporated on 09.12.2004 and engaged in the business of supplying manpower services to various companies. The assessee has electronically filed its return of income for A.Y 2021-22 on 02.03.2022 declaring total income of Rs. 55,49,770/- and claiming refund of Rs.4,25,390/-. The CPC, Bengaluru in order passed u/s. 143(1) of the Act has computed the tax @ 30% instead of 22% computed by the assessee. The assessee has contended that it has filed Form-10IC on 15.12.2020 opting for the concessional tax rate u/s. 115BAA of the Act. The CPC, Bengaluru in the intimation has also mentioned that the assessee has opted for concessional tax rate u/s 115BAA of the Act, despite this the CPC has computed the tax @ 30%. The Ld. CIT(A) while observing in para 5.2 that the assessee has filed Form-10IC on time and also filed return of income u/s. 139 of the Act, has held that the assessee has not opted for taxation u/s. 115BAA of the Act.
4. The Ld. Authorized Representative (A.R) of the assessee has argued that it is evident from the intimation notice itself that the assessee has opted for concessional tax rate u/s 115BAA of the Act which is mentioned in Sr. No.1 of intimation notice.
5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.
6. We have heard the rival submissions, and perused the materials available on record. The assessee has filed Form-10IC on 15.12.2020 opting for concessional tax rate u/s. 115BAA of the Act. The intimation notice u/s 143(1) for A.Y 2021-22 also clearly mentions at Sr. No.1 that the assessee has opted for concessional tax rate u/s 115BAA of the Act. Therefore, the Ld. CIT(A) was not justified to hold that the assessee has not opted for concessional tax rate u/s 115BAA. We accordingly set aside the order of Ld. CIT(A) and direct A.O to compute the tax at concessional rate as opted by the assessee.
7. In the result, the appeal of the assessee is allowed.
Order pronounced on 25th October, 2024.
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