Case Law Details
Sunpack Barrier Films Pvt Ltd Vs ADIT (ITAT Ahmedabad)
The case involves an appeal by Sunpack Barrier Films Pvt Ltd against a decision by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, regarding Assessment Year 2021-22. Sunpack Barrier Films Pvt Ltd, engaged in manufacturing plain flexible films, opted for taxation under Section 115 BAA of the Income Tax Act, 1961, at a reduced rate. However, the Centralized Processing Center (CPC) calculated tax without considering this option, leading to additional tax demand. The Ld. CIT(A) dismissed the appeal due to the assessee’s failure to file Form 10-IC within the specified timeline, as mandated by Circular No. 06/2022.
The Ld. CIT(A) cited Circular No. 06/2022, stating that Form 10-IC had to be filed electronically by a certain date to avail of the reduced tax rate under Section 115BAA. The CIT(A) noted the appellant’s failure to meet this requirement and dismissed the appeal. The appellant argued that there was no intimation or mail from the department regarding the filing of Form 10-IC and contended that the responsibility to comply with the requirement rested with the department. However, the CIT(A) rejected this argument, emphasizing the appellant’s obligation to fulfill the conditions set forth in Circular No. 06/2022.
Additionally, the appellant invoked a Supreme Court judgment regarding the extension of limitation periods due to the COVID-19 pandemic. However, the CIT(A) deemed this judgment inapplicable to the present case, emphasizing the technical nature of the appellant’s non-compliance with statutory requirements.
The appellant further contended that Circular No. 19/2023, issued by the CBDT, provided for the condonation of delays in filing Form 10-IC for Assessment Year 2021-22. The Circular stipulated conditions for eligibility, including filing the return of income by the due date, opting for taxation under Section 115BAA, and electronically filing Form 10-IC by a specified deadline. The appellant argued that it met all these conditions and thus qualified for the reduced tax rate.
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