D.C. TELETRONICS PRIVATE LIMITED,VADODARA V. DCIT, CIRCLE - 1(1)(1), VADODARA

ITA 1417/AHD/2025

AI Insights

The case involves D. C. Teletronics Private Limited appealing against the decision of the CPC, which denied them the special tax rate under Section 115BAB of the Income Tax Act during the processing of their return under Section 143(1). The appellant argued that they had duly filed Form 10-ID within the prescribed time, opting for the special tax rate, and that the CPC's denial was without reason and violated natural justice. The CIT(A) had failed to address this issue, leading to the appeal. The tribunal agreed with the appellant, noting the lack of reasoning in the CPC's decision and the failure of the CIT(A) to adjudicate on this ground.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 778352 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2023-2024
• Appeal Filed On: 09-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NITIN KULKARNI
• Assessee Lawyers: PRATEEK JAIN
• Keywords: Principle of natural justice

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE: SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER आयकर अपील सं./I.T.A. No. 1417/Ahd/2025 (िनधा[रण वष[ / Assessment Year : 2023-24) D. C. Teletronics Private Limited Ls No.275/A/2, Lasundra Road, Lasundra, Savli, Vadodara, Gujarat – 391775 बनाम/ Vs. DCIT Circle-1(1)(1), Vadodara Öथायी लेखा सं./जीआइआर सं./PAN/GIR No. : AAHCD7105P (Appellant) .. (Respondent) अपीलाथȸ ओर से /Appellant by : Shri Prateek Jain, AR Ĥ×यथȸ कȧ ओर से/Respondent by : Shri Nitin Kulkarni, Sr.DR Date of Hearing 01/10/2025 Date of Pronouncement 08/10/2025 (आदेश)/ORDER PER ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), ADDL/JCIT(A)-1, Noida (hereinafter referred to as “CIT(A)”), dated 23.05.2025 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) and relates to Assessment Year (A.Y.) 2023-24. 2. The grounds of appeal raised by the assessee are as under: “1. On the facts and circumstances of the case and in law, the CPC erred in denying the special tax rate u/s 115BAB despite the Printed from counselvise.com ITA No. 1417/Ahd/2025 [D.C. Teletronics Private Limited vs. DCIT] A.Y. 2023-24 - 2 – fact that the Appellant has opted for section 115BAB by Fling Form 10-ID within the time limit prescribed by the Act. 2. That on the facts and circumstances of the case and in law, the CPC erred in denying the special tax rate u/s 115BAB without providing any reason and any show cause notice with respect to the same. Hence, the CPC has acted in violation of principle of natural justice. 3. That on the facts and circumstances of the case and in law, the CPC has acted without jurisdiction as the CPC does not have the power to deny the special tax rate while processing intimation u/s 143(1) of the Act. 4. Appellant craves leave to add, alter, modify or delete any of the grounds of appeal.” 3. The solitary issue in the present appeal pertains to denial of claim of tax to be levied on the income of the assessee at the special tax rate as prescribed u/s.115BAB of the Act by the CPC on processing the return of income filed by the assessee u/s.143(1) of the Act. 4. Ld. Counsel for the assessee pointed out that the Ld. CIT(A) had failed to adjudicate this ground raised before it despite assessee pleading that the denial of the special tax rate u/s.115BAB of the Act was incorrect, since, the assessee had opted for it and filed the mandated Form 10-ID within the time prescribed by the Act and CPC had given no reason for denying the same. 5. The Ld. DR was unable to point out any infirmity in the arguments made by the Ld. Counsel for the assessee before us as the above. Printed from counselvise.com ITA No. 1417/Ahd/2025 [D.C. Teletronics Private Limited vs. DCIT] A.Y. 2023-24 - 3 – 6. We have also gone through the order of the Ld. CIT(A) and we find that he has not dealt with the ground specially raised by the assessee before it of denial of special rate of tax u/s.115BAB of the Act. Further, as rightly pointed out by the Ld.Counsel for the assessee, the intimation made u/s.143(1) of the Act in which, the special rate of tax claimed by the assessee was denied, does not mention any reason for the denial. 7. In the light of the same, we find that there is no case for denying the assessee benefit of special rate of tax u/s.115BAB of the Act. The CPC is directed to allow the same to the assessee. 8. In the result, appeal filed by the assessee is allowed. This Order pronounced on 08/10/2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 08/10/2025 S. K. SINHA True Copy आदेश कȧ Ĥितिलǒप अĒेǒषत/Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant 2. Ĥ×यथȸ / The Respondent. 3. संबंिधत आयकर आयुƠ / Concerned CIT 4. आयकर आयुƠ(अपील) / The CIT(A)- 5. ǒवभागीय Ĥितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड[ फाईल / Guard file. आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "