DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-3(1), CHENNAI V. SUNDAR CHEMICALS PRIVATE LIMITED, CHENNAI

ITA 47/CHNY/2025

AI Insights

The case involves an appeal by the Revenue against the order of the Learned Commissioner of Income Tax, Appeal, which favored Sundar Chemicals Pvt. Ltd. The core issue was the applicable tax rate for the company for the Assessment Year 2018-19. The Revenue contended that the tax rate should be 30% as computed by the Centralized Processing Center (CPC), Bengaluru, while the CIT(A) had applied a 25% rate based on the company's turnover being less than Rs. 50 Crore in the previous financial year. The Tribunal found no infirmity in the CIT(A)'s order and dismissed the Revenue's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107231 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: misc
• Laws Referred To: Finance Act 2017, Finance Act 2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITHA
• Assessee Lawyers: T.G.SURESH; C.A
• Section: 143(1)

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी एबी टी. वक , \u0011ा ियक सद! एवं \u0019ी जगदीश, लेखा सद! क े सम( BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.47/Chny/2025 िनधा9रण वष9 /Assessment Year: 2018-19 The Dy. Commissioner of Income Tax, Corporate Circle-3(1), Chennai. Vs. Sundar Chemicals Pvt. Ltd., 6G, 560-562, Century Plaza, Anna Salai, Tenyampet, Chennai – 600 018. [PAN: AABCS 5173Q] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथ की ओर से/ Assessee by : Shri T.G.Suresh, C.A IJथ की ओर से /Revenue by : Ms. R. Anitha, Addl. CIT सुनवाई की तारीख/Date of Hearing : 27.03.2025 घोषणा की तारीख /Date of Pronouncement : 17.04.2025 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Mumbai [hereinafter “Addl. CIT(A)”] dated 21.10.2024. 2. There is a delay of 08 days in filing the appeal by the Revenue. The Revenue has filed condonation petition/affidavit stating the ITA No.47/Chny/2025 :- 2 -: reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned. 3. The effective ground of appeal in this appeal of Revenue is against the order of Ld. Addl. CIT(A) holding the rate of tax @ 25% as against 30% computed by the CPC, Bengaluru as the turnover of assessee is less than 50 Crore. 4. The assessee-company had computed the tax payable @25% as per Finance Act 2017 as the turnover of the assessee-company in the previous year 2015-16 was less than Rs. 50 Cr. However, CPC in the intimation u/s 143(1) has computed the tax @ 30%. On appeal, the Ld. Addl. CIT(A) noted that the turnover of the company in previous year 2015-16 is Rs. 46.79 Cr., which is less than Rs. 50 Cr. and therefore, held that the assessee is liable to be taxed @ 25%. 5. The Ld. Departmental Representative has supported the order of CPC. ITA No.47/Chny/2025 :- 3 -: 6. We have heard the rival submissions, and perused the materials available on record. We find that the assessee’s total revenue for Previous year 2015-16 is Rs. 48,72,17,725/-, which includes revenue from operation of Rs.46,79,12,993/- and other income of Rs.1,93,04,731/-. As per Finance Act 2018, if the total turnover of the company for previous year 2015-16 is less than Rs. 50 Cr., the rate of tax applicable in A.Y 2018-19 is 25%. In view of the above, we do not find any infirmity in the order of Ld. Addl. CIT(A) and we uphold the same. 7. In the result, the appeal filed by the Revenue is dismissed. Order pronounced on 17th April, 2025. Sd/- Sd/- (एबी टी. वक ) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member चे\u0010नई/Chennai, \u0013दनांक/Dated: 17th April, 2025. EDN/- आदेश क\u0016 \bितिल\u0019प अ\u001aे\u0019षत/Copy to: 1. अपीलाथ\b/Appellant 2. थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय ितिनिध/DR 5. गाड\u0019 फाईल/GF "