The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that for claiming reduction under section 115BAA of Income Tax Act the domestic companies should file form 10-IC within the prescribed time.
On behalf of the appellant, Counsel Nihar A. Mehta appeared and Chetan M. Kacha appeared for the department.
The Assessee Bholanath Precision Engineering Pvt Ltd is a domestic company. The assessee filed its return of income on 15/01/2021 declaring a total income of Rs. 20, 71,870. The Assessing Officer issue an intimation on 18/12/2021 under section 143(1) of the Act and determined the total income of the assessee at Rs. 23,01,890, inter-alia, after making certain adjustments.Further, the AO computed the tax liability of the assessee @ 30%.Against the order of AO assessee challenged the computation of tax liability @ 30% instead of 22% as available under section 115BAA of the Act.
Counsel for the assesee contented that due to covid reasons the assessee could not file the Form 10–IC. In order to claim the beneficial rate the assesee had approach CBDT for condonation of delay in filing Form 10–IC for rate of tax provided under section 115BAA of the Act.Counsel for the department relied upon the order passed by the lower authorities.
After considering the contention of the both side the division bench of the ITAT compraising Sri. Shri Sandeep Singh Karhail (Judicial Member) and Shri Om Prakash Kant (Accountant Member) dismiss the appeal filed on the above ground.
Furthermore the bench observed that section 115BAA was introduced in the Act by the Taxation Laws (Amendment) Act, 2019, with effect from 01/04/2020.For getting reduction in corporate tax the domestic companies should file Form 10-IC.Therefor the due date for filing the return of income was extended to 15/02/2021, and the return of income was filed by the assessee on 15/01/2021. However, the assessee did not file Form 10–IC before the due date of filing the return of income hence assessee will not get benefit under section 115BAA of Act.
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