9911796707
TMI Blog2024 (7) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... f tax charged @ 40% instead of 22% as the assessee has exercised option u/s 115BAA(5) of the Income Tax Act, 1961. (2) Other grounds if any, shall be argued and urged at the time of hearing". 3. The assessee has requested for adjournment. However, considering the grounds of appeal and perusal of records, I decide to adjudicate the appeal on merit on the basis of available records and submissions of the ld. D.R. 4. The sold grievance of the assessee is that ld. CIT(Appeals) was not justified in confirming the rate of tax charged @ 40% instead of 22%, even when the assessee has exercised the option under section 115BAA(5) of the Act. 5. The facts in brief are that the assessee is a Private Limited Company and it furnished its return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to go through the section 115BAA of the Act, which reads as under:- "115BAA. Tax on income of certain domestic companies. (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, other than those mentioned under section 115BA and section 115BAB, the income-tax payable in respect of the total income of a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall, at the option of such person, be computed at the rate of twenty-two per cent., if the conditions contained in sub-section (2) are satisfied: Provided that where the person fails to satisfy the conditions contained in sub-section (2) in any previous ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of sub-section (2) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year: Provided that where there is a depreciation allowance in respect of a block of asset which has not been given full effect to prior to the assessment year beginning on the 1st day of April, 2020, corresponding adjustment shall be made to the written down value of such block of assets as on the 1st day of April, 2019 in the prescribed manner, if the option under sub-section (5) is exercised for a previous year relevant to the assessment year beginning on the 1st day of April, 2020. (4) In case of a person, having a Unit in the International Financial Services Centre, as ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies, I notice that undisputedly the assessee falls in the category of domestic companies for the benefit of section 115BAA of the Act as provided under the Act. The assessee has validly filed option on Form 10IC for A.Y. 2020-21 and has been given the benefit of section 115BAA of the Act and has been taxed @ 22% only. The only question before me is whether the assessee is required to opt for falling under section 115BAA of the Act in each year of its filing the income tax return or not. Sub-section (5) of section 115BAA provides that nothing contained in section 115BAA of the Act shall apply if the option is exercised by the person in the prescribed manner on or before the due date specified under section 139(1) for furnishing the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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