Fastner Commodeal Private Limited Vs ADIT (ITAT Kolkata)
ITAT Kolkata dealt with an assessee-company’s claim for concessional taxation under Section 115BAA for AY 2020-21 where Form No. 10-IC had not been electronically filed within the prescribed time. Fastner Commodeal Private Limited filed its return declaring income of Rs. 58,69,56,530/- and computed tax at 22%, surcharge at 10% and cess at 4% on the footing that it had opted for Section 115BAA. However, while processing the return under Section 143(1), CPC calculated tax at 25%, surcharge at 12%, cess at 4% and consequential interest, resulting in a demand of Rs. 2,96,02,670/-. The dispute therefore centred on whether failure to electronically furnish Form 10-IC within the prescribed time defeated the assessee’s otherwise claimed option for taxation under Section 115BAA.
Before the CIT(A), the assessee submitted that it had opted for Section 115BAA while filing its return and sought an opportunity to furnish Form 10-IC so that the concessional rate could be allowed. The CIT(A), however, upheld the adjustment because Form 10-IC had not been filed with the return and the assessee had also failed to comply with the extended timeline contemplated by CBDT Circular No. 6/2022 dated 17.03.2022. The Circular had been issued to address difficulties experienced by domestic companies in the first year of Form 10-IC and provided for condonation subject to prescribed conditions.
