Reotech Process Equipment Private Limited Vs ITO (ITAT Chennai)
Summary: ITAT Chennai allowed Reotech Process Equipment Private Limited’s appeal and directed the Assessing Officer to grant the concessional tax rate under Section 115BAA for AY 2024-25. The assessee filed its return under Section 139(1) on 26.10.2024 declaring total income of ₹63,20,120/- and continued the option under Section 115BAA, but CPC denied that option while processing the return under Section 143(1).
The assessee had originally filed Form 10-IC for AY 2020-21 on 29.03.2021. It contended that the option had been accepted by the Department and the concessional rate had been allowed for AYs 2020-21, 2021-22 and 2022-23. The CIT(A), however, treated the original Form 10-IC as invalid because it had not been filed within the extended due date for the AY 2020-21 return and held that the relief under CBDT Circular No. 6 of 2022 dated 17.03.2022 was unavailable because the assessee had not filed its AY 2020-21 return under Section 139(1).
The CIT(A) consequently held that the Form 10-IC was invalid for subsequent years as well. Before the Tribunal, the assessee argued that once the option under Section 115BAA had been exercised and accepted, the second proviso to Section 115BAA(5) prevented its subsequent withdrawal. ITAT noted that the Department had accepted the option and allowed the Section 115BAA benefit for AYs 2020-21, 2021-22 and 2022-23.
