The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that the revised return filed not amounts to the non-filing of the return and deny of a lower tax rate under section 115BAA of the Income Tax Act,1961 is not valid.
The assessee, M/s.Ujjivan Small Finance Bank Limited is a small finance bank which filed the return of income on 21.12.2022 declaring a total income of Rs.481,18,55,840. The return of income was filed within the due date u/s 139(1) of the Income Tax Act,1961 since CBDT had extended the due date to 15.02.2021 vide Notification No.93/2020 dated 31.12.2020.
The assessee filed a revised return on 30.03.2021 declaring a total income of Rs.481,22,57,300. The assessee had opted for the new tax regime u/s 115BAA of the Act. The assessee did not file Form No.10-IC electronically within the due date but claimed as it has filed the same physically on 18.11.2021.
The assessee was taxed at the normal rate and the benefit u/s 115BAA of the Act was denied. Further, interest u/s 234A, 234B and 234C of the Act was also charged. The CIT(A) allowed the ground relating to the deduction claimed u/s 80JJAA of the I.T.Act and denied the benefit u/s 115BAA by holding that the assessee did not fulfil condition 3(i) of the Board Circular No.06/2022 dated 17.03.2022.
The tax rate as per section 115BAA of the act is 22% instead of the 30% tax rate under the normal provision. It was evident that the CBDT vide its Circular No.06/2022 (supra) had extended the time limit for filing Form 10-IC electronically on or before 30.06.2022 or 3 months from the end of the month in which the Circular was issued, whichever is later.
A Coram of Shri George George K, JM & Ms Padmavathy S, AM noticed that the assessee has filed the return within the due date specified u/s 139(1) of the act. Further observed that the assessee has filed a revised return subsequently cannot deny the fact that the assessee has not filed the return u/s 139(1) of the Act.
The Tribunal reversed the decision of the CIT(A) being erred in holding that the assessee has not filed the return u/s 139(1) of the act and denied the benefit u/s 115BAA of the Income Tax Act,1961 and held that the assessee is entitled to the benefit of section 115BAA of the act.
The appellant was represented by Sri.S.Ananthan, CA and the respondent was represented by Sri.Bijoy Kumar Panda, CIT-DR.Subscribe Taxscan Premium to view the Judgment