SFP SONS (INDIA) PRIVATE LIMITED,CHENNAI V. DCIT, CORP CIRCLE 3(1), CHENNAI

ITA 1054/CHNY/2024

AI Insights

The case involves M/s. SFP Sons (India) Pvt. Ltd., the appellant, contesting the denial of a concessional tax rate of 22% for the Assessment Year 2022-23 by the Central Processing Center (CPC) and the subsequent confirmation of this decision by the CIT(A). The CPC had applied a tax rate of 30% on the grounds that the applicable Form-10-IC was not filed by the due date. The assessee argued that the concessional rate should apply as they had previously filed the form for earlier assessment years, and Section 115BAA(5) supports the continuity of this option once exercised. The Tribunal agreed with the assessee, noting that the concessional rate had been accepted in previous years and that the late filing of the return did not affect the applicability of the concessional rate.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472348 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 28-08-2024
• Assessment Year: 2022-2023
• Appeal Filed On: 16-04-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITA LD
• Assessee Lawyers: N. ARJUN RAJ LD
• Section: 143(1)

Judgement Text

" आयकर अपीलीय अिधकरण “सी” Ɋायपीठ चेɄई मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI माननीय ŵी महावीर िसंह, उपाȯƗ एवं माननीय ŵी मनोज क ुमार अŤवाल ,लेखा सद˟ क े समƗ। BEFORE HON’BLE SHRI MAHAVIR SINGH, VP AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.1054/Chny/2024 (िनधाŊरण वषŊ / Assessment Year: 2022-23) M/s. SFP Sons (India) Pvt. Ltd. A-24, MEPZ-SEZ, Kadaperi, Tambaram, Chennai-600 045. बनाम/ Vs. DCIT Corporate Circle-3(1) Chennai. ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAICS-9235-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri N. Arjun Raj (Advocate)-Ld. AR ŮȑथŎकीओरसे/Respondent by : Ms. R. Anita (Addl.CIT)-Ld. DR सुनवाईकीतारीख/Date of Hearing : 28-08-2024 घोषणाकीतारीख /Date of Pronouncement : 18-11-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2022-23 arises out of the order of learned Addl. / Joint Commissioner of Income Tax (Appeals)-1, Pune [CIT(A)] dated 29-02-2024 in the matter of an intimation issued by CPC u/s 143(1) of the Act on 06-11-2023. The sole grievance of the assessee is application of concessional rate of tax of 22%. The CPC has denied the same and applied tax rate of 30% apparently on the ground that applicable Form-10-IC was filed beyond due date / not filed. Accordingly, demand of Rs.18.41 Lacs was raised 2 against the assessee. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. Having heard rival submissions, the appeal is disposed-off as under. 2. It emerges that the assessee filed requisite Form 10-IC on 15-02- 2021 for AY 2020-21 to claim concessional rate of tax u/s 115BAA. The same was allowed not only for AY 2020-21 but also for AY 2021-22. The assessee claimed this concession for AY 2022-23 also. However, this time, the concession was denied by CPC. During appellate proceedings, the assessee drew attention to sub-section (5) of Sec.115BAA and submitted that once this option is exercised at any after 01-04-2020, the same would apply to subsequent years also. 3. The Ld. CIT(A) noted that the assessee filed return of income on 31-12-2022 as against extended due date of 30-11-2022. The corporate assessee could opt for concession by filing Form 10-IC but this was to be done before due date of filing of tax return for the relevant assessment year. The claim that this concession was accepted for earlier years could not be verified. Since the assessee did not fulfill the prescribed condition of furnishing the applicable form before due date of return of income u/s 139(1), the appeal was dismissed against which the assessee is in further appeal before us. 4. From the documents as placed in paper book, it could be seen that for AY 2020-21, CPC has accepted concessional rate of 22%. Similarly, for AY 2021-22, this concessional rate has been accepted. Similar rate has been accepted for subsequent AY 2023-24 also. In view of these undisputed facts, sub-section (5) of Sec.115BAA would apply which provide the once this option is exercised by the assessee at any time after 01-04-2020, the same would apply to subsequent years also. The 3 fact that the return of income for impugned year was filed belatedly would have no consequence. The Ld. CIT(A) apparently could not verify this aspect. However, the same has now been brought on record by Ld. AR. Therefore, we direct Ld. AO to grant concessional rate of tax to the assessee and revise the demand as raised against the assessee. 5. The appeal stand allowed. Order pronounced on 18th November, 2024. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपाȯƗ / VICE PRESIDENT लेखा सद˟ / ACCOUNTANT MEMBER चेɄई Chennai; िदनांक Dated : 18-11-2024 DS आदेशकीŮितिलिपअŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT Chennai. 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF "