DCIT Vs Western Coalfields Ltd. (ITAT Nagpur)
Revenue filed appeal against the order of CIT(A) dated 20.01.2025 for AY 2021-22. The dispute related to denial of concessional tax rate u/s 115BAA on the ground of delay in filing Form 10-IC. CIT(A) condoned the delay attributing it to COVID-19 hardship, relying on CBDT Circular No.6/2022 dt 17.03.2022 which extended the due date for AY 2020-21. CIT(A) held that since the Assessee had opted for 115BAA regime in its returns for AYs 2020-21 & 2021-22 & later filed Form 10-IC electronically, the procedural lapse was bona fide & should not deny substantive benefit. AO was directed to verify filing of Form 10-IC & allow benefit accordingly.
Revenue argued that CIT(A) exceeded jurisdiction u/s 251(1)(a) by setting aside the matter for verification, citing ITAT Nagpur in Firoz Faruk Hussain Vs ITO & ITAT Chennai in ACIT Vs Mohamed Hassan. It also challenged the validity of CPC’s rectification order u/s 154 dated 08.04.2024 which had already granted relief & reduced tax liability to nil.
Tribunal noted that CPC had already rectified the return & allowed the benefit, reducing tax liability to nil, hence Revenue’s appeal was infructuous. It held that CIT(A)’s observation directing AO to verify Form 10-IC did not amount to “setting aside” assessment but was a limited direction incidental to relief. Tribunal further observed that ground challenging CPC’s rectification u/s 154 was premature since it was not part of the appeal before CIT(A).
