M/S. CHOLA BUSINESS SERVICES LTD.,CHENNAI V. ITO, CORPORATE WARD 1 (3), CHENNAI

ITA 1167/CHNY/2024

AI Insights

The case involves M/s. Chola Business Services Ltd., which appealed against the order of the Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-2, Gurugram, concerning the Assessment Year 2021-22. The primary contention was the incorrect application of the tax rate by the Centralized Processing Center (CPC), Bengaluru, which applied a 30% tax rate instead of the concessional 22% rate under section 115BAA of the Income-tax Act, 1961. The assessee had filed Form-10IC opting for the concessional rate, which was acknowledged in the intimation notice but not applied in the tax computation. The Tribunal set aside the CIT(A)'s order and directed the Assessing Officer to apply the concessional tax rate as opted by the assessee.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107239 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 04-09-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 23-04-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.ANITA
• Assessee Lawyers: SANJEEV ADITYA; C.A
• Keywords: Set aside
• Section: 143(1); 139

Judgement Text

"आयकर अपीलीय अिधकरण, ‘सी’ \u0011ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH: CHENNAI \u0019ी एबी टी. वक\u001f, \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.1167/Chny/2024 िनधा:रण वष: /Assessment Year: 2021-22 M/s. Chola Business Services Ltd., Super B-4, C54-55, Chola Crest, Thiru Vi Ka Industrial Estate, Guindy Industrial Estate, Chennai – 600 032. Vs. The Income Tax Officer, Corporate Ward-1(3), Chennai. [PAN: AACCC 5400D] (अपीलाथ\u0007/Appellant) (\b\tयथ\u0007/Respondent) अपीलाथ\u001f की ओर से/ Appellant by : Shri Sanjeev Aditya, C.A GHथ\u001f की ओर से /Respondent by : Ms. R. Anita, Addl. CIT सुनवाई की तारीख/Date of Hearing : 04.09.2024 घोषणा की तारीख /Date of Pronouncement : 25.10.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2021-22 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-2, Gurugram [hereinafter “CIT(A)”] dated 23.02.2024 vide intimation u/s. 143(1) of the Income-tax Act, 1961 (hereinafter “the Act”) issued by CPC, Bengaluru dated 20.10.2022. ITA No.1167/Chny/2024 :- 2 -: 2. The only effective ground in this of appeal of assessee is against confirming the intimation notice issued by CPC, Bengaluru, wherein the CPC has not allowed the concessional rate of tax even though the assessee has opted for concessional rate u/s. 115BAA of the Act and filed the required form within time. 3. The assessee company was incorporated on 09.12.2004 and engaged in the business of supplying manpower services to various companies. The assessee has electronically filed its return of income for A.Y 2021-22 on 02.03.2022 declaring total income of Rs. 55,49,770/- and claiming refund of Rs.4,25,390/-. The CPC, Bengaluru in order passed u/s. 143(1) of the Act has computed the tax @ 30% instead of 22% computed by the assessee. The assessee has contended that it has filed Form-10IC on 15.12.2020 opting for the concessional tax rate u/s. 115BAA of the Act. The CPC, Bengaluru in the intimation has also mentioned that the assessee has opted for concessional tax rate u/s 115BAA of the Act, despite this the CPC has computed the tax @ 30%. The Ld. CIT(A) while observing in para 5.2 that the assessee has filed Form-10IC on time and also filed return of income u/s. 139 of the Act, has held that the assessee has not opted for taxation u/s. 115BAA of the Act. ITA No.1167/Chny/2024 :- 3 -: 4. The Ld. Authorized Representative (A.R) of the assessee has argued that it is evident from the intimation notice itself that the assessee has opted for concessional tax rate u/s 115BAA of the Act which is mentioned in Sr. No.1 of intimation notice. 5. The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities. 6. We have heard the rival submissions, and perused the materials available on record. The assessee has filed Form-10IC on 15.12.2020 opting for concessional tax rate u/s. 115BAA of the Act. The intimation notice u/s 143(1) for A.Y 2021-22 also clearly mentions at Sr. No.1 that the assessee has opted for concessional tax rate u/s 115BAA of the Act. Therefore, the Ld. CIT(A) was not justified to hold that the assessee has not opted for concessional tax rate u/s 115BAA. We accordingly set aside the order of Ld. CIT(A) and direct A.O to compute the tax at concessional rate as opted by the assessee. 7. In the result, the appeal of the assessee is allowed. Order pronounced on 25th October, 2024. Sd/- Sd/- (एबी टी. वक\u001f) (ABY. T. Varkey) \u0011ाियक सद! / Judicial Member (जगदीश) (Jagadish) लेखा सद! /Accountant Member ITA No.1167/Chny/2024 :- 4 -: चे\u0003ई/Chennai, \u0005दनांक/Dated: 25th October, 2024. EDN/- आदेश क\u0002 \u0003ितिलिप अ\tेिषत/Copy to: 1. अपीलाथ\b/Appellant 2. \t थ\b/Respondent 3. आयकर आयु\u0010/CIT, Chennai 4. िवभागीय \tितिनिध/DR 5. गाड\u0019 फाईल/GF "