MARELLI (INDIA) PRIVATE LIMITED,GURUGRAM V. DEPUTY COMMISSIONAR OF INCOME-TAX, CIRCLE 16(1), NEW DELHI

ITA 1136/DEL/2025

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Marelli (India) Private Limited appealed against the order of the Commissioner of Income Tax Appeal Addl. /JCIT(A)-5 Chennai, which had partly allowed their earlier appeal but upheld the demand raised by the CPC. The primary contention was the denial of the concessional tax rate under section 115BAA due to the alleged late filing of Form No. 10-IC. The Tribunal examined the submissions and evidence provided by the assessee, including the timely submission of Form No. 10-IC as per the extended deadline set by the CBDT. The Tribunal's decision reversed the lower authorities' findings, granting relief to the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786623 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2020-2021
• Appeal Filed On: 27-02-2025
• Other Referred Cases: KN Support Services (P) Ltd. vs. DCIT, Kworks Technologies (P) Ltd. vs. DCIT, Aprameya Engineering Ltd. vs. ITO, Kcreate Konnect E Solutions (P) Ltd. vs. DCIT, Madison Communications (P) Ltd. vs. ACIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANKUSH KALRA
• Keywords: Opportunity of being heard

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SH. SUDHIR KUMAR, JUDICIAL MEMBER AND SH.MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.1136/Del/2025 Assessment Year: 2020-21 Marelli (India) Private Limited 5th Floor, Tower 8, Candor Teachspace,one reality Project IT/ITES Sez Village Tikri Sector 48 Gurugram Haryana-122018 Pan No. AAGCM2620K Vs Deputy Commissioner of Income Tax, Circle 16(1) CR Building, Delhi (APPELLANT) (RESPONDENT) Appellants by Sh.Aditya Vohra, Advocate Sh. Arpit Goyal, CA Respondent by Sh. Ankush Kalra, Sr. DR. Date of hearing: 27/10/2025 Date of Pronouncement: 19/11/2025 ORDER PER SUDHIR KUMAR, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax Appeal Addl. /JCIT(A)-5 Chennai [hereinafter referred to as “Ld. CIT(A)”], vide order dated 23.12.2024 pertaining to A.Y. 2020-21 and arises out of the intimation order dated 20-06-2024 passed by the CPC Printed from counselvise.com 2 Bengaluru under Section 143(1) of the Income Tax Act, 1961 [hereinafter referred as ‘the Act’]. 2. The assessee has raised the following grounds of appeal: 1. That on the facts and the circumstances of the case and in law, the order dated 23-12-2024 passed by the Commissioner of Income Tax( Appeals) [“CIT(A)”] under section 250 of the Income Tax Act 1961(“the Act”) in the case of the Appellant for assessment year 2020-21 is patently erroneous, unsustainable and bad in law. 2. That the CIT(A) erred on facts and in law in not allowing benefit of concessional tax rate under section 115BAA of the Act to the appellant, on ground that the Appellant had not established whether Form No. 10IC was filed within the extended due date prescribed by the CBDT vide Circular No. 6/2022 dated17-03-2022. 3 That the CIT(A) erred on facts and in law in summarily rejecting the claim of the Appellant , without considering the documents on record and without affording an opportunity of being heard to the appellant. 4. That the CIT(A) erred on facts and in law in upholding the levy of interest under section 234B,234C and 234D of the Act. 3. The brief facts of the case are that the assessee is accompany engaged in the business of providing services such as development, testing, technical support, other business support services and trading in automobile parts. The assessee filed its return of income for the A.Y. 2020-21 on 12-01-2021 declaring total income of Rs.26,70,57,030/-. The assessee deposed the advance tax of Rs. 4,85,00,000/- and deducted the tax at sources of Rs. 2,25,41,556/-. The assessee claimed the Printed from counselvise.com 3 refund of Rs.38,28,640/-. The return of income processed u/s 143(1) of the Act by The CPC and raised the demand of Rs. 2,95,42,770/-. Being aggrieved the order of the intimation, the assessee filed the appeal before the National faceless Appeal Centre. The appeal filed by the assessee was partly allowed by the NFAC, on 01-02-2024. Subsequently in the compliance of the appellate order the assessment order was passed raising the demand of Rs.3,76,67,179/-. Aggrieved the order from the Assessing Officer the assessee company filed the appeal before the Ld CIT(A), who vide his order dated 23-12-2024 partly allowed the appeal. Ld. CIT(A) has observed in his order as under: Ground relating to Failure to consider option opted under 115BAA: 4.5 In the return of income filed by the appellant for AY 2020- 21, the appellant had exercised the option for being taxed at a rate of 22% (plus applicable surcharge and education cess) under section 115BAA of the Act. 4.6 The appellant had submitted that the appellant inadvertently did not file Form 10-IC on the e-filling portal within the prescribed time limit i.e. until the due date for filing return of income under section 139(1) of the Act. 4.7 In order to the avail the benefit of concessional rate of tax u/s.115BAA, a domestic company has to file form 10IC before the due date u/s.139(1). However, the CBDT, New Delhi considering the fact that such omissions are probable in the first year of its implementation and appreciating the plight of Printed from counselvise.com 4 assessees of similar grievances, had by Circular No.6/2022 dated 17/03/2022 in F.No.173/32/2022-ITA-1, condoned the delay and extended the due date for filing or filing form no.10IC for AY 2020-21 to 30/06/2022. 4.8 As at present, the appellant has not established that the Form 10IC has been filed within the extended due date, the corresponding ground of appeal is therefore dismissed. Ground relating to levy of interest under section 234B, 234C and 234D: 4.9 The levy of interest u/s.234B, 234C and 234D are consequential in nature and will get adjusted when the other ground of appeal is addressed and therefore not adjudicated separately. 5. Conclusion: As a result, the appeal of the Appellant is PARTLY ALLOWED. 4. Being aggrieved the order of the Ld. CIT(A), the assessee is in appeal before the tribunal. 5. Ld. AR of the assessee submitted that the assessee has opted the concessional rate of tax u/s 115BAA of the Act, and duly update the 10IC form within extended date. He further submitted that the CTBT has condoned the delay under section 119(2) of the Act in filing of Form10- IC for Assessment year 2020-21. It is submitted that the date was extended up to 30- 06-2022 or three months from the end of month in which this circular is issued, which is later. The assessee has uploaded the Form No.10-Icon 06-05-2022. The Circular No.6/2022 dated Printed from counselvise.com 5 17th March, 2022 issued by the CBDT and the uploaded Form 10-IC by the assessee are as under: Printed from counselvise.com 6 Printed from counselvise.com 7 Printed from counselvise.com 8 6. The assessee has placed reliance on the following decisions :- 1. KN Support Services (P) Ltd. vs. DCIT [2025] 178 taxmnna.com 368 (Del Trib.) 2. Kworks Technologies (P) Ltd. vs. DCIT [2025] 178 taxmann.com 61 (Del Trib.) 3. Aprameya Engineering Ltd. vs. ITO [2024] 164 taxman.com 740 (Ahd Trib.) 4. Kcreate Konnect E Solutiosn (P) Ltd. vs. DCIT [2025] 176 taxmna.com 998 5. Madison Communications (P) Ltd. vs. ACIT [2024] 206 ITD 774 (Mum Trib.) Printed from counselvise.com 9 7. The Ld. DR has relied on the order of the lower authorities. We have heard the parties and gone through the material available on record. The benefit of concessional tax rate u/s 115BAA of the Act was denied on the basis that the assessee has failed to establish that the Form No.10-IC was filed within the extended due, date. The assessee has filed the copy of Form 10-IC( Paper book page no. 157&158 ) to prove that the required form was filed within the due date. The last date for filing the Form No.10-IC was 30-06-2022 and the form was updated on 06-05-2022 which is in time. The assessee filed the Form10-IC before the due date, therefore, the assessee is eligible for concessional tax regime. The AO is directed to delete the demand raised by the CPC. The, grounds raised by the assessee is allowed. 8. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 19.11.2025. Sd/- Sd/- (MANISH AGARWAL) (SUDHIR KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Neha, Sr. PS Date:-19.11.2025 Copy forwarded to: 1.Appellant 2.Respondent 3.CIT 4.CIT(Appeals) ` 5.DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI Printed from counselvise.com "