SAP PARTS PRIVATE LIMITED,PUNE V. INCOME TAX OFFICER CIRLE 5,PUNE, PUNE

ITA 2157/PUN/2025

AI Insights

SAP Parts Private Limited appealed against the order of the Addl/JCIT(A)-1, Gurugram, which arose from a Rectification Order under section 154 of the Income Tax Act, 1961. The primary contention was regarding the tax rate applied to the company for the assessment year 2021-22. The company argued that it should be taxed at 25% instead of 30%, citing a turnover of less than Rs. 400 crore in the financial year 2018-19, qualifying for a concessional tax rate under section 115BA. The Tribunal found merit in the assessee's argument and directed the Jurisdictional Assessing Officer to verify the turnover and apply the correct tax rate if the assessee's claim was substantiated.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 788116 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 18-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRAMOD SHAHAKAR
• Assessee Lawyers: ROHIT TAPADIA
• Keywords: Rectification of order

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2157/PUN/2025 Assessment Year : 2021-22 SAP Parts Private Limited, Survey No.1087/04, Pune-Nagar Pimple Jagtap Link Road, Sanaswadi, Pune 412208 Maharashtra PAN : AAXCS2045P Vs. Income Tax Officer, Circle-5, Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BOARD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee pertaining to A.Y. 2021-22 is directed against the order dated 24.07.2025 framed by Addl/JCIT(A)-1, Gurugram arising out of Rectification Order dated 11.04.2023 passed u/s.154 of the Income Tax Act, 1961. 2. Assessed has raised following grounds of appeal : “On facts and in law and without prejudice to each other 1. The Ld. CPC ought to have calculated the tax liability at 25% (being tax rate applicable to company whose turnover is less than 400 crores in FY 18-19) instead of calculating at 30%. Appellant by : Shri Rohit Tapadia Respondent by : Shri Pramod Shahakar Date of hearing : 04.11.2025 Date of pronouncement : 27.11.2025 Printed from counselvise.com ITA No.2157/PUN/2025 SAP Parts Private Limited 2 2. The Ld. CPC and CIT-A ought to have granted the benefit of concessional tax rate at 25% u/s 115BA of the IT Act. 3. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case.” 3. At the outset, Ld. Counsel for the assessee requested for not pressing Ground No.2 and the same is therefore dismissed as ‘Not pressed’. 4. Apropos to effective Ground of appeal No.1, ld. Counsel for the assessee fairly stated that the details of the turnover of the preceding financial years were not mentioned in the return since the assessee wanted to take benefit of concessional tax rate at 25% u/s.115BA of the Act. He however submitted that if the turnover of domestic company for F.Y. 2018-19 does not exceed Rs.400 crore then income of such domestic companies are liable to tax @25% instead of 30%. He therefore submitted that after making necessary verification income of the assessee should be subjected to tax @25% only, which even otherwise, assessee has adopted in its income-tax return to pay the tax liability on the total income for the year. 5. On the other hand, ld. Departmental Representative supported the order of ld.CIT(A). 6. We have heard the rival contentions and perused the record placed before us. We note that the assessee is a Private Limited Company and is claiming for concessional tax rate of 25% provided u/s.115BA of the Act. However, since the assessee could not furnish relevant form prescribed under the Act for claiming such concessional rate, CPC in its Intimation order dated 25.10.2022 and further in the Rectification order Printed from counselvise.com ITA No.2157/PUN/2025 SAP Parts Private Limited 3 u/s.154 of the Act dated 11.04.2023, denied the claim u/s.115BA of the Act and in absence of details available about the turnover for A.Y. 2018-19, taxed the income @30%. 7. Before us, ld. Counsel for the assessee has only prayed in Ground No.1 that since the turnover of the assessee during F.Y. 2018-19 did not exceed Rs.400 crore, therefore, the tax rate applicable to the assessee company is 25%. We find merit in the contention of ld. Counsel for the assessee that incase the turnover of a domestic company during F.Y. 2018-19 is less than Rs.400 crore then in terms of para (e) of the Finance Bill 2021 in case of the Domestic Company, the rate of income-tax shall be 25% of the total income and in all other cases rate of income-tax shall be 30%. Considering the prayer of the ld. Counsel for the assessee and the documents in the form of Audited Statements of profit and loss account for F.Y. 2018-19 (Audited on 30.06.2019) filed before us, we deem it appropriate to restore the matter to the file of ld. Jurisdictional Assessing Officer for carrying out necessary verification and if the contentions of the assessee of having turnover less than Rs.400 crore is found to be correct, then the income of the assessee should be charged to tax @25% only. Needless to mention that ld.JAO shall afford reasonable opportunity to the assessee. Ground No.1 raised by the assessee is allowed for statistical purposes. 8. Ground No.3 is general in nature and needs no adjudication. Printed from counselvise.com ITA No.2157/PUN/2025 SAP Parts Private Limited 4 9. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on this 27th day of November, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 27th November, 2025. Satish आदेश क\u0002 \u0003ितिलिप अ ेिषत / Copy of the Order forwarded to : 1. अपीलाथ / The Appellant. 2. \u000eयथ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, “B” ब\u0014च, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "