SGJ ENTERPRISES PRIVATE LIMITED,PATIALA V. DCIT, CIRCLE, PATIALA

ITA 645/CHANDI/2024

AI Insights

The case involves M/s SGJ Enterprises Private Limited, which appealed against the order of the Commissioner of Income Tax (Appeals), National Fearless Appeals Centre Delhi, concerning a rectification intimation issued by the Centralized Processing Center (CPC) under section 154 of the Income Tax Act. The primary issue was the application of the correct tax rate for the Assessment Year 2020-21. The CPC initially applied a normal tax rate of 30%, whereas the assessee contended that a concessional rate of 25% should apply, given their turnover was below Rs. 250 Crores in the relevant financial year. The Tribunal found merit in the assessee's argument and directed the Assessing Officer to rectify the tax computation accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 397935 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR LD.
• Assessee Lawyers: PARIKSHIT AGGARWAL LD
• Section: 154

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No. 645/CHANDI/2024 (िनधाŊरणवषŊ / Assessment Year: 2020-21) M/s SGJ Enterprises Private Limited D-197 Focal Point Patiala 147001 बनाम/ Vs. DCIT-Circle Patiala Aaykar Bhawan Patiala ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AANCS-8860-N (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Parikshit Aggarwal (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 22-05-2025 घोषणाकीतारीख /Date of Pronouncement : 02-06-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2020- 21 arises out of an order of learned Commissioner of Income Tax (Appeals), National Fearless Appeals Centre Delhi [CIT(A)] dated 22- 12-2023 in the matter of rectification intimation issued by CPC u/s 154 of the Act on 21-06-2022. The sole grievance of the assessee is application of correct rate of tax. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. The registry has noted delay of 93 days in the appeal which stands condoned. 2 2. It emerges that the assessee being resident corporate assessee filed return of income on 22-12-2020 declaring income of Rs.60.45 Lacs. The CPC processed the same u/s 143(1) and applied normal tax rate of 30% as applicable to companies. On the other hand, the assessee had applied concessional rate of 25%. Aggrieved, the assessee preferred rectification u/s 154 which was also rejected by CPC vide intimation dated 21-06-2022. The Ld. CIT(A) rejected the appeal on the ground that the assessee could have filed appeal against intimation u/s 143(1) but the assessee filed appeal against intimation order issued u/s 154. The original cause arises at the stage of proceedings u/s 143(1) and accordingly, the issue could not be adjudicated in the present appeal. In the result, the appeal was dismissed against which the assessee is in further appeal before us. 3. We are of the opinion that separate cause of action had arisen for the assessee i.e., first against intimation passed u/s 143(1) and secondly, against rectification intimation passed u/s 154. Both intimations are appealable before Ld. CIT(A). Therefore, the appeal could not be dismissed merely on technical ground and the appellate door could not be shut against rectification intimation. Having said so, we find that the lower rate of tax was not claimed by the assessee u/s 115BAA but the assessee has claimed general concessional rate of tax of 25% which was applicable to all corporate assessee having turnover of less than Rs.250 Crores during previous year 2016-17. The Ld. AR has placed on record financial statements for FY 2016-17 which would indicate that the turnover of the assessee, in this year, is merely 3 Rs.2.07 Crores. Accordingly, the assessee is eligible to claim concessional basic rate of tax of 25%. Therefore, Ld. AO is directed to make correct computations of tax payable by the assessee. The basic rate of tax as applicable to the assessee would be 25%. We order so. 4. The appeal stand allowed. Order pronounced on 02-06-2025 Sd/- Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 02-06-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT, CHANDIGARH "