MA SHANTI AGRO FOODS PVT. LTD.,BIRBHUM V. ACIT, CC 2(1), KOLKATA

ITA 570/KOL/2025

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Ma Shanti Agro Foods Pvt. Ltd. filed an appeal against the order of the Commissioner of Income Tax (Appeals)-26, Kolkata, which was passed in response to an intimation under section 143(1) of the Income Tax Act, 1961, issued by the DDIT, CPC, Bengaluru. The primary contention was the incorrect application of tax rates applicable for the old regime, despite the assessee opting for the new tax rates under section 115BAA. The CIT(A) partly allowed the appeal, but the assessee, still aggrieved, approached the Tribunal. However, before the Tribunal could decide, the CPC rectified the intimation, applying the correct tax rates as per the new regime, leading to the withdrawal of the appeal by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772765 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Condonation of delay
• Section: 154; 119(2)(b)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘C’ BENCH, KOLKATA Before SHRI GEORGE MATHAN, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER I.T.A. No.: 570/KOL/2025 Assessment Year: 2021-22 Ma Shanti Agro Foods Pvt. Ltd. Vs. ACIT, Central Circle 2(1), Kolkata (Appellant) (Respondent) PAN: AALCS3574P Appearances: Assessee represented by : Ms. Sharin Nessa, AR. Department represented by : Subrata Aich, Sr. DR. Date of concluding the hearing : 05-August-2025 Date of pronouncing the order : 27-August-2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-26, Kolkata [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2021-22 dated 07.02.2025, which has been passed against the intimation u/s 143(1) of the Act, dated 13.11.2022 issued by the DDIT, CPC, Bengaluru, (‘the Ld. AO’). 2. The assessee has raised the following grounds of appeal before the Tribunal: “1. For that in view of facts and circumstances of the case, learned Commissioner of Income Tax (Appeal), NFAC erred on facts as well as in law in confirming the action of learned Assessing Officer in applying tax Rates applicable for Old Regime overlooking the fact that the assessee have opted for tax rates prescribed under section 115BAA of the I.T. Act, 1961 Printed from counselvise.com Page | 2 I.T.A. No.: 570/KOL/2025 Assessment Year: 2021-22 Ma Shanti Agro Foods Pvt. Ltd. 1.1 For that, without prejudice to the above, the learned CIT (appeal) erred on facts as well as in law in not considering the fact that the delay in filing Form 10IC up to 31/01/2024 have been condoned by Hon'ble Central Board of Direct Taxes vide circular No. 19/2023 dated the 23rd October, 2023, issued u.s. 119(2)(b) of the Income Tax Act, 1961,as Form 10 IC was duly filed on 07.11.2023 vide e-Filing Acknowledgement No: 505806450071123 i.e. within 31.01.2024, 1.2. For that, without prejudice to the above and on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in incorrectly concluding that the assessee should have filed Application for condonation of delay in filing Form 10IC before the Principal Commissioner of Income Tax, ignoring the fact that delay up to 3 months from the end the month in which Circular dt. 23.10.2023 was issued (i.e. delay of 3 months up to 31/01/2024) 1.3 For that, without prejudice to the above and on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in incorrectly applying the Circular No 17/2024 dt. 18/11/2024, which was applicable to the assessee who has not filed Form No. 10-IC or Form No. 10-ID for Assessment Years 2020-21, 2021-22 and 2022-23 within 31/01/2024, the extended due date, up to which delay has already been condoned vide circular No. 19/2023 2 For that in view of facts and in Circumstance of the case and material brought on record, the Ld. CIT (A) erred in confirming the addition of Rs. 20684.00 by invoking section 36(1) (va) of the I.T. Act, Act, 1961, made by Ld. Assessing Officer, Central Processing Centre 3 The appellant craves leave to add further grounds of appeal or alter the grounds at the time of hearing.” 3. Brief facts of the case are that the assessee had filed the return for the A.Y. 2021-22 showing total income of Rs. 1,58,68,310/- on 13.02.2022 and had opted for the new regime of tax under section 115BAA of the Act. The return was processed and an intimation dated 13.11.2022 determining the total income of Rs. 1,58,88,890/- with tax liability of Rs. 56,43,498/- was issued by the Ld. AO. Aggrieved with the intimation, the assessee filed an appeal before the Ld. CIT(A), who partly allowed the appeal. Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal. Printed from counselvise.com Page | 3 I.T.A. No.: 570/KOL/2025 Assessment Year: 2021-22 Ma Shanti Agro Foods Pvt. Ltd. 4. Rival contentions were heard. The Ld. AR submitted a letter during the course of the appeal before us stating that the CPC has duly rectified the intimation dated 13/11/2022 under section 154 of the Act by computing the liability at the rates specified in the Act and has revised the intimation vide order dated 09/10/2024 and requested for withdrawal of the appeal. The relevant extract of the written submission filed is as under: 5. Being aggrieved by the said order of the CPC u/s 143(1) of the Income-tax Act 1961 dated 13.11.2022, the petitioner filed an appeal before the National Faceless Appeal Centre on 8th January, 2022 under Acknowledgement No. 839405750081222.But Ld. CIT(A) dismissed the appeal on the ground for non- filing of Application before The Principal Commissioner of Income Tax. Act 1961 for condonation of delay in filing Form 10-IC, overlooking the fact that the delay in filing Form-10IC was duly condoned by CBDT vide circular no, 19-2023 vide order dated 07.02.2025, passed under section 250 of the Income Tax Act, 1961. 6. Being aggrieved by an order u/s 250 dated 7th February 2025 under DIN & Order No. ITBA/APL/S/250/2024-25/1073016367(1), passed by the National Faceless Appeal Centre (NFAC) under Appeal No. CIT(A) Kolkata- 20/10204/2020-21, dismissing the appeal on the ground for non-filing of Application before The Principal Commissioner of Income Tax Act 1961 for condonation of delay in filing Form 10-IC, overlooking the fact that the delay in filing Form-10IC was duly condoned by CBDT vide circular no, 19-2023. the assessee is in appeal before the Hon'ble ITAT. 7. However, the CPC has duly rectified the intimation dt. 13.11.2022 u.s. 154 of the IT Act, 1961 by computing the tax liability at the rates specified in Section 115JAA of the I.T. Act, 1961 and revised the intimation vide order dt. 09.10.2024 su-moto. A copy of said intimation dt. 09.10.2024 is furnished vide Annexure-2 enclosed herewith. 8. The appellant submits that only main dispute in this case is related to levy of tax at old rate instead of rate of taxation @22% prescribed in Section 115JAA of the I.T. Act, 1961, which has been duly resolved by the CPC by passing intimation dt. 09.10.2024 su-moto. Therefore, appeal filed on 24.03.2025 is being withdrawn by the present petition, as ground no.2 regarding disallowance of Rs. 20,884.00 u/s 36(1) (va) is also not pressed, as the whole appeal is being withdrawn. Printed from counselvise.com Page | 4 I.T.A. No.: 570/KOL/2025 Assessment Year: 2021-22 Ma Shanti Agro Foods Pvt. Ltd. 9. A sympathetic view may kindly be taken and the prayer for withdrawal of Appeal made may kindly be accepted 10. Leave of absence may kindly be granted to the undersigned to move this petition in person. 5. The Ld. DR raised no objection to the request made by the Ld. AR. 6. We have considered the submissions made. Since the required relief has been allowed to the assessee, the appeal filed before the Tribunal becomes infructuous and the same is being dismissed as withdrawn as other grounds of appeal are also not being pressed by the assessee. 7. In the result, the appeal filed by the assessee is dismissed as withdrawn. Order pronounced in the open Court on 27th August, 2025. Sd/- Sd/- [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 27.08.2025 Bidhan (Sr. P.S.) Printed from counselvise.com Page | 5 I.T.A. No.: 570/KOL/2025 Assessment Year: 2021-22 Ma Shanti Agro Foods Pvt. Ltd. Copy of the order forwarded to: 1. Ma Shanti Agro Foods Pvt. Ltd., Village Chakpara, Chakpara, Birbhum, West Bengal - 731233. 2. ACIT, Central Circle 2(1), Aayakar Bhawan (Poorva), 110, Shantipally, E.M. Byepass, Kolkata - 700107. 3. CIT(A)-26, Kolkata. 4. CIT- 5. CIT(DR), Kolkata Benches, Kolkata. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata Printed from counselvise.com "