GREATWAY PRIVATE LIMITED,OPP MILITARY CAMP GT ROAD LDH V. DEPUTY COMMISSIONER OF INCOME TAX-4(1), AAYAKAR BHAWAN RISHI NAGAR LUDHIANA

ITA 234/CHANDI/2024

AI Insights

The case involves Greatway Private Limited, which appealed against the order of the CIT(A) confirming the taxation under normal provisions instead of the concessional rate under section 115BAA, as opted in their ITR. The assessee had filed their return on time and opted for concessional taxation, which was acknowledged in ITR 6 but failed to submit Form 10IC electronically. The CPC in Bengaluru calculated tax as per normal provisions and passed the intimation order under section 143(1). The Tribunal acknowledged the oversight and remanded the case back to the CIT(A) for a fresh decision, emphasizing the need for a fair hearing and consideration of all submissions and documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774527 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Appeal Filed On: 08-03-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: ASHISH AGGARWAL
• Keywords: Principle of natural justice
• Section: 234B

Judgement Text

"1 आयकर अपीलȣय अͬधकरण, चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 234/CHD/2024 Ǔनधा[रण वष[ / Assessment Year : 2020-21 Greatway Private Limited, Opp. Military Camp G.T.Road, Ludhiana. बनाम Vs. DCIT, Aayakar Bhawan Rishi Nagar, Ludhiana. èथायी लेखा सं./PAN NO. AAACG5950E अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent ( Physical Hearing ) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri. Ashish Aggarwal, C.A. राजèव कȧ ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई कȧ तारȣख/Date of Hearing : 28-07-2025 उदघोषणा कȧ तारȣख/Date of Pronouncement : 03.09.2025 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the assessee against the order dated 29-01-2024 of Ld. Addl./JCIT(A)-3, Bengaluru. Printed from counselvise.com 2 234-Chd-2024- Gateway Private Limited, Ludhiana 2. Grounds of appeal are as under: 1(a). That the Ld. CIT(A) has erred in confirming the taxation of the assessee company under normal provisions wrongly made by CPC, Bengaluru, instead of applying taxation rate as per provisions section 115BAA opted by the assessee company in the ITR filed. 1(b) That the Ld. CIT(A) has erred in law and facts of the case in not appreciating the fact that the assessee company had clearly opted for the newly inserted provisions for taxation u/s 115BAA in the return of income filed as well as clearly mentioned by the Tax Auditors in the Form 3CD at column No 8A. 1(c). That the Ld. CIT(A) has wrongly confirmed the order u/s 143 (1) of CPC, Bengaluru ignoring the fact that the appellant company had filed requisite Form 10-IC. 2. That the Ld. A.O. has charging interest u/s 234B & 234C which is consequential. 3. That the appellant reserve the right to amend, delete, and substitute, modify or after any one or more of the grounds of appeal at the time of hearing. Printed from counselvise.com 3 3. Brief facts of the case, as per the order of the Addl. CIT(A), are as under: - The assessee is private limited company. The appellant has filed the return of income on or before the due date of filing of return and opted for the concessional taxation u/s 115BAA of the IT Act and the appellant had clearly mentioned this fact in ITR 6 in Schedule Part A, but failed to file the prescribed form-10IC electronically. The AO CPC has calculated the tax as per normal provisions and passed the intimation order u/s 143(1). Aggrieved by the order the appellant has filed this appeal. 4. During proceedings before us, ld. Counsel for the Assessee submitted that by mistake the form No. 10IC was not submitted alongwith the return rather it was submitted later on. But the CPC Bengaluru did not take it into consideration and rejected the claim of the Assessee for concessional taxation u/s 115BBA of the I.T. Act. The Ld. Counsel thus submitted before the Bench that the matter may be remanded back to the CIT(A) with the direction to Printed from counselvise.com 4 accept from 10IC filed by the Assessee belatedly and adjudicate the case on merits. 5. Per contra, the ld. DR relied on the order of the Ld. CIT(A). 6. We have considered the findings given by the CPC Bengaluru and the Ld. CIT(A) in their respective orders. We find that a simple mistake of oversight committed by the Assessee, should not be a reason to deny its rightful claim under the income Tax Act. Therefore, we are of the considered view that in the fitness of things and keeping in view the element of natural justice to the Assessee, the matter should be remanded back to the file of the CIT(A) for adjudication afresh on merit. 7. Accordingly, the case is remanded back to the file of the CIT(A) for adjudication afresh on merit, by considering the submissions and documents, if any, produced by the Assessee and the relevant material available on record. Printed from counselvise.com 5 Needless to say, that the CIT(A) shall afford due, reasonable and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 8. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced on 03.09.2025 Sd/- Sd/- ( RAJPAL YADAV ) ( KRINWANT SAHAY) Vice President Accountant Member “आर.क े.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आयुÈत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar Printed from counselvise.com "