Mumbai bench of Income Tax Appellate Tribunal (ITAT), directed to verify documents with respect to Form 10-IC in case of dispute in concessional rate of tax while processing of return of income.
The assessee Traxit Engineers Pvt. Ltd is a private company . After filing the return of income for AY 2020-21 on 14.10.2020 declaring a total income of Rs. 1,06,77,810/- and had paid tax at Rs. 26,87,391/- under section 115BAA of the Income Tax Act, 1961.
The return was processed under section 143(1) and the CPC has worked out tax at Rs. 35,64,680/-. Aggrieved the assessee filed its appeal before the CIT(A). In absence of the response from the assessee the CIT(A) dismissed the appeal. Thereafter the assessee filed another appeal before the tribunal.
Assesee representative , Sanjay Parikh argued that assessee has filed Form10-IC as per Rule 21AE of the Income Tax Rules subsequently and therefore, is eligible for concessional rate of tax under section 115BAA of the Act.
P.D. Chougule , the Department representative, submitted that assessee has not appeared before the CIT(A) inspite of giving several opportunities. The CIT(A) to submit that the CIT(A) has correctly remanded the issue to the AO to examine the claim that Form 10-IC is filed on or before 30.06.2022 and allow the concessional rate as per law.
It was observed that the assessee filed a return of income and has claimed concessional rate of tax under section 115BAA of the Act. Since Form 10IC was not filed along with the return of income filed under section 139(1) of the Act, while passing order under section 143(1), the CPC has denied the concessional rate of tax and has levied tax at normal rates.
Further observed that during the appellate proceedings the assessee did not respond to the notices issued by the CIT(A) calling for details.Therefore the CIT(A) has relied on the Circular No. 6/2022 dated 17.03.2022 and has directed the AO to verify whether the assessee has filed the Form 10-IC on or before 30.06.2022 and that the fact could not be verified due to non-appearance of the assessee before the CIT(A).
After observing the submissions of both parties the two-member bench of Padmavathy S, (Accountant member ) and Pavan Kumar Gadale, (Judicial Member) directed the assessee is to furnish the relevant details in support of the claim of applications of concessional rate of tax under section 115 BAA and co-operate with the appellate proceedings.
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