SHABARI TELECABLE NETWORK PRIVATE LIMITED,BANGALORE V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1), BANGALORE

ITA 1668/BANG/2024

AI Insights

The case involves Shabari Telecable Network Private Limited, which appealed against the order of the Addl./Jt.CIT(Appeals)-6, Delhi, for the Assessment Year 2021-22. The primary contention was the incorrect dismissal of their appeal by the CIT(A), which allegedly violated the principles of natural justice. The assessee argued that they had complied with the CBDT Circular No.9/2022 regarding the condonation of delay in filing Form No.10-IC, which was not considered by the CIT(A). The Tribunal noted that the assessee had exercised the option for taxation under section 115BAA and had filed the return within the extended due date. The Tribunal found that the assessee had indeed filed Form 10-IC within the extended deadline provided by the CBDT Circular No.19/2023, thus eligible for the benefits under section 115BAA.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 25111 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-10-2024
• Assessment Year: 2021-2022
• Appeal Filed On: 29-08-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VISHNU R.
• Keywords: Principle of natural justice; Procedural lapse
• Section: 143(1); 139(1); 234B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K., JUDICIAL MEMBER ITA No. 1668/Bang/2024 Assessment year : 2021-22 Shabari Telecable Network Private Limited, No.112, Shabari Bhawan, Indranagar, Bangalore – 560 008. PAN : AAGCS 7426R Vs. The Deputy Commissioner of Income Tax, Circle 6(1)(1), Bangalore. APPELLANT RESPONDENT Appellant by : Shri Vishnu R., CA Respondent by : Shri Subramanian S., Jt.CIT(DR)(ITAT), Bengaluru. Date of hearing : 14.10.2024 Date of Pronouncement : 23.10.2024 O R D E R Per Laxmi Prasad Sahu, Accountant Member This appeal is filed by the assessee against the order dated 01.07.2024 of the Addl./Jt.CIT(Appeals)-6, Delhi for the AY 2021-22 on the following grounds:- “1. On the facts and in the circumstances of the case, the Ld.CIT(A) has wrongly dismissed the appeal in violation of principles of natural justice. Only one notice of hearing was issued by the Ld.CIT(A) on 21-09-2023 to which the appellant furnished reply on 12-01-2024 and thereafter no further ITA No.1668/Bang/2024 Page 2 of 5 opportunity to explain its compliance to Circular No.9/2022, subsequently issued by the CBDT, has been granted. 2. In ensuing circumstances, particularly after appellant complied with CBDT Circular No.9/2022 on condonation of delay in filing Form No.10-IC, the adjustment made in the intimation does not survive any more and therefore liable to be deleted. 3. The AO, has erred in not suo moto passing rectification order against intimation nullifying the demand even after the appellant complied with CBDT Circular No.9/2022. 4. The CPC erred in levying interest U/s.234A, 234B & 234C of the Act. 5. The appellant craved leave to add, alter, amend, substitute, change and delete any grounds of appeal.” 2. Briefly stated the facts of the case are that the assessee is a private limited domestic company engaged in providing facility management and house keeping services to various corporate clients. It filed return of income on 28.02.2022 for AY 2021-22 declaring total income at Rs.5.17 crores by clearly stating its option of getting taxed as per section 115BAA in the appropriate columns of the return. However, the assessee did not file Form 10-IC before filing its return. While processing the return u/s. 143(1) by CPC, the tax liability was calculated as per regular provisions of the Act applying 30% tax rate raising the demand to Rs.84,23,890. Aggrieved from the above order, the assessee filed appeal before the First Appellate Authority (FAA). 3. The ld. FAA dismissed the appeal of the assessee. Aggrieved, the assessee is in appeal before the ITAT. ITA No.1668/Bang/2024 Page 3 of 5 4. The ld. AR of the assessee reiterated the submissions made before the FAA. He submitted that there was a procedural lapse on the part of assessee in not filing Form 10-IC, but the option for taxation as per section 115BAA was duly exercised in the return of income. During the pendency of appeal before the CIT(Appeals), the CBDT issued Circular No.19/2023 (F.No.173/32/2022-ITA-1) dated 23.10.2023 which is placed on record as Annexure-A on condonation of delay in filing Form 10-IC and gave opportunity to the assessee who missed out filing Form 10-IC within the stipulated time to electronically file that Form on or before 31.01.2024. He submitted that sufficient opportunity was not provided to the assessee during the course of appellate proceedings to put forth that Form 10-IC was filed within the due date prescribed by CBDT Circular No.19. The ld. FAA provided only one opportunity to the assessee. The assessee has filed return as per section 139(1) on 28.02.2022 which is within the extended due date on 15.03.2022, therefore the return is filed within due date. The assessee opted for taxation u/s. 115BAA and Form 10-IC was filed electronically on 31.01.2024. The assessee complied all the provisions and conditions stipulated. Therefore the assessee should be given benefit of section 115BAA. 5. The ld. DR relied on the order of lower authorities. 6. Considering the rival submissions, we note that while filing return of income the assessee exercised option u/s. 115BAA and filed return of income on 28.02.2022 and the extended due date is ITA No.1668/Bang/2024 Page 4 of 5 15.03.2022. The CBDT vide Circular No.19 dated 23.10.2023 condoned the delay in filing Form 10-IC for AY 2021-22 u/s. 119(2)(b) and extended the due date upto 31.01.2024 or three months from the end of the month in which this Circular is issued, whichever is later. The assessee has filed Form 10-IC on 31.01.2024 and acknowledgement is placed at page 13-14 of PB. Accordingly the assessee is eligible for benefit of section 115BAA. Therefore, we remit this issue to the file of AO for fresh consideration for verification of Form 10-IC filed by the assessee and grant of benefit of section 115BAA of the Act. Needless to mention that assessee be given reasonable opportunity of hearing. The assessee is directed to provide necessary documents as per the requirement of the AO. 7. In the result, the appeal by the assessee is allowed for statistical purposes. Pronounced in the open court on this 23rd day of October, 2024. Sd/- Sd/- ( SOUNDARARAJAN K.) (LAXMI PRASAD SAHU ) JUDICIAL MEMBER ACCOUNTANT MEMBER Bangalore, Dated, the 23rd October, 2024. /Desai S Murthy / ITA No.1668/Bang/2024 Page 5 of 5 Copy to: 1. Appellant 2. Respondent 3. Pr.CIT 4. CIT(A) 5. DR, ITAT, Bangalore. By order Assistant Registrar ITAT, Bangalore. "