Ferranza Electric Vehicle Pvt. Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi – Sec 115BAB Concessional Tax Cannot Be Denied in Subsequent Year Once Validly Exercised; CPC Adjustment Set Aside
In Ferranza Electric Vehicle Pvt. Ltd. vs DCIT (AY 2023-24), the ITAT Delhi allowed the assessee’s appeal and held that concessional tax benefit u/s 115BAB cannot be denied on technical grounds where the option had already been validly exercised in an earlier year. The CPC denied the benefit stating that the valid return for the year was filed belatedly; however, the Tribunal noted that Form 10-ID had been filed in AY 2022-23 and once exercised, the option automatically continues for subsequent years as per Sec 115BAB(7).
The ITAT observed that the assessee’s return initially became invalid u/s 139(9) and was later corrected through a revised return, which was only a procedural defect. Since the concessional regime had already been opted earlier and cannot be withdrawn thereafter, denial by CPC was unjustified. Accordingly, the Tribunal directed that concessional taxation u/s 115BAB be allowed and the assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals), ADDL/JCIT (A)-6, Mumbai (hereinafter referred to ‘ld. CIT(A)’) dated 30.06.2025 for AY 2023-24.
