JAI BARBAREEK DEV SNACKS PRIVATE LIMITED,DURG V. INCOME TAX OFFICER-1(1), BHILAI, BHILAI

ITA 380/RPR/2025

AI Insights

The case involves Jai Barbareek Dev Snacks Private Limited appealing against the orders of the CIT(Appeals)/NFAC, which upheld the disallowance of a concessional tax rate of 15% under section 115BAB of the Income Tax Act, 1961 for the assessment years 2023-24 and 2024-25. The primary contention was whether the assessee had correctly opted for the concessional tax rate in their income tax return. The Tribunal found that there was a need for a re-examination of the return to ascertain if the option for concessional taxation under section 115BAB was indeed exercised by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711756 (ITAT-RAIPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2023-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: ABHISHEK MAHAWAR
• Keywords: Set aside
• Section: 139

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA Nos. 380 & 381/RPR/2025 Ǔनधा[रण वष[ /Assessment Years : 2023-24 & 2024-25 Jai Barbareek Dev Snacks Private Limited Plot No.644, Kumhari, Kumhari S.O, Kandarka, Durg-490 042 (C.G.) PAN: AAFCJ6128E .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer-1(1), Bhilai (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri Abhishek Mahawar, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 23.07.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 23.07.2025 Printed from counselvise.com 2 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The captioned appeals preferred by the assessee emanates from the respective orders of the Ld.CIT(Appeals)/NFAC, dated 18.03.2025 and 21.03.2025 for the assessment years 2023-24 & 2024-25 as per the grounds of appeal on record. 2. Both the parties herein conceded that since the facts and issues involved in both these appeals are absolutely similar and identical, therefore, the cases may be taken up together and dispose of vide this consolidated order. 3. In these appeals the limited point for adjudication is whether CPC/A.O was correct in making disallowance of concessional tax rate @15% u/s. 115BAB of the Income Tax Act, 1961 (for short ‘the Act’) which was upheld by the Ld. CIT(Appeals)/NFAC. In this regard, the findings of the Ld. CIT(Appeals)/NFAC are extracted as follows: “5.4 I have carefully considered the appellant’s submission. Here it is pertinent to mention that to claim the benefit of concessional tax rate @15% as per provisions of Section 115BAB of the I.T.Act; Form No.10ID have to file on or before the due date specified under sub-section (1) of Section 139 for furnishing the returns of income for the first assessment year commencing on or after 1st day of April, 2020 to avail the benefit. Such option once exercised shall apply to subsequent assessment years and cannot be withdrawn. Printed from counselvise.com 3 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 On perusal of income tax return filed by the appellant electronically for A.Y.2023-24 on 31/10/2023, it is seen that the appellant has filed in “Column No. (e) under filing status of ITR as under: Printed from counselvise.com 4 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 Printed from counselvise.com 5 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 Thus, the appellant has not opted for taxation under section 115BAB of the I.T. Act (applicable on Domestic Company) and not reported in the column \"(e) under filing status\" instead the appellant has opted for \"none of the above\" in the first ITR filed for A.Y. 2023-24. Therefore, the claim of the appellant is not allowable. Keeping in view of the above, I am of the opinion that the CPC (AO) has rightly made disallowance of concessional lower tax rate @ 15% u/s 115BAB of the I.T. Act, 1961. Therefore, these grounds of appeal are dismissed. 6. In the result, the appeal is dismissed.” 4. Since in the first year i.e. A.Y.2023-24, the benefit of Section 115BAB of the Act denied to the assessee following the “4th proviso” to Section 115BAB of the Act. The department had also denied the same for A.Y.2024-25. The same is only referred to and not being extracted for the sake of brevity. 5. At the time of hearing referring to the finding part of the Ld. CIT(Appeals) for A.Y.2023-24, the Ld. Counsel pointed out that in the income tax return, they had mentioned in the Column “ Have you opted for taxation under section 115BA/115BAA/115BAB (applicable on Domestic company) and therein the assessee had mentioned “none of the above” mentioning that for the earlier year, they had not made such option. However, in the “column” appearing thereafter, it is written “whether you are choosing to opt for taxation under section 115BA /115BAA/115BAB in this year?” and for that, the assessee had given Printed from counselvise.com 6 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 option as “Yes”, therefore, there has been wrong interpretation of the income tax return by the revenue authorities. 6. I have carefully considered the facts on record and the income tax returns as emanating from the order of the Ld. CIT(Appeals)/NFAC and therein the contention raised by the Ld. Counsel requires through verification of facts and correct interpretation by the first appellate authority. If it is found that the contention of the Ld. Counsel is correct and indeed they have opted for taxation u/s. 115BAB of the Act for the relevant assessment year, in such case, the revenue needs to determine on facts regarding applicability of concessional taxation rate regarding the assessee. 7. Be that as it may, it is the onus on the part of the Ld. CIT(Appeals)/NFAC to interpret correctly the return of income and since the department is having adequate machinery, it has to be carefully done so that rights of the bonafide assessee should not be hampered. In view thereof, I set aside the order of the Ld. CIT(Appeals)/NFAC and remand the matter back to its file for denovo adjudication as per law specifically responding to the aforesaid direction. 8. As per the above terms grounds of appeal raised by the assessee is allowed for statistical purposes. Printed from counselvise.com 7 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 9. In the result, appeal of the assessee in ITA No.380/RPR/2025 for A.Y.2023-24 is allowed for statistical purposes. ITA No.381/RPR/2025 A.Y.2024-25 10. As the facts and issues involved in the captioned appeal remains the same as were there before me in ITA No.380/RPR/2025 for A.Y.2023-24, therefore, the decision rendered in ITA No.380/RPR/2025 for A.Y.2023-24 shall mutatis-mutandis apply for ITA No.381/RPR/2025 for A.Y.2024-25. 11. In the result, appeal of the assessee in ITA No.381/RPR/2025 for A.Y.2024-25 is allowed for statistical purposes. 12. In the combined result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in open court on 23rd day of July, 2025. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 23rd July, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. Printed from counselvise.com 8 Jai Barbareek Dev Snacks Private Limited Vs. ITO-1(1), Bhilai ITA Nos. 380 & 381/RPR/2025 5. गाड[ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur Printed from counselvise.com "