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TMI Blog2024 (12) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal before the Ld. CIT(A) / NFAC. It was submitted that the assessee filed its return of income declaring total income at Rs. 106,62,47,730/-. The assessee had opted for taxation u/s 115BAA of the Act which was accepted by the CPC in the intimation issued u/s 143(1) of the Act. The assessee filed the rectification application u/s 154 of the Act on account of short grant of TDS. However, the CPC instead of granting any benefit for short deduction of TDS, worked out the tax liability at Rs. 16,09,01,080/- by not granting the benefit of section 115BAA of the Act. 5. It was submitted that the rectification order passed by the CPC without giving any opportunity to the assessee and without assigning any reason for rejection of the option exercised by the assessee to compute its tax liability as per provisions of section 115BAA of the Act is invalid in law. It was argued that the CPC in the preceding assessment year had allowed the option exercised by the assessee u/s 115BAA of the Act. Therefore, when the assessee has not withdrawn the option exercised earlier u/s 115BAA of the Act, the CPC without assigning any reason and without giving any opportunity could not have computed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the option exercised by the assessee u/s 115BAA of the Act was totally incorrect and the said issue could not rectified in the order passed u/s 154 since there was no mistake apparent from record which could be rectified in the order passed u/s 154 of the Act. 3] The learned CIT(A) ought to have appreciated that the assessee had fulfilled all the conditions and had duly exercised the option for computing the tax as per the provisions of section 115BAA of the Act and therefore, the action of the learned CPC in disallowing the claim was totally incorrect in law. 4] The learned CIT(A) failed to appreciate that the learned CPC had erred in rejecting the claim of the assessee for computing the tax liability u/s 115BAA of the Act without giving any reason thereof and accordingly, the rectification order passed by the learned CPC was invalid in law. 5] The learned CIT(A) further erred in not appreciating that the learned CPC erred in restricting the claim of TDS amount at Rs. 1,05,47,783/- as against Rs. 3,11,80,042/- without giving any reason and therefore, the action of the learned CPC in restricting the claim of TDS to a lesser amount was not justified and the claim of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee should not have any grievance since the Ld. CIT(A) / NFAC had directed the Assessing Officer to verify the claim and pass necessary rectification order. 11. We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC. We find the assessee in the instant case has exercised the option u/s 115BAA of the Act to tax its income at lower rate. The CPC for the assessment year 2020-21 has accepted the option exercised by the assessee and the assessee was taxed at lower rate as per provisions of section 115BAA. For the current year in the original intimation, the CPC has accepted the computation made by the assessee, according to which, net tax payable was computed at Rs. 26,83,53,229/-. However, since the CPC had given short credit, the assessee filed an application u/s 154 of the Act. We find the CPC without assigning any reasons and without giving opportunity to the assessee enhanced the tax liability by determining the tax at normal rate as against u/s 115BAA. 12. We find the provisions of section 115BAA read as under: "115BAA. (1) Notwithstanding anything contained in this Act but subject to the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 referred to in sub-section (1A) of section 80LA, which has exercised option under sub-section (5), the conditions contained in sub-section (2) shall be modified to the extent that the deduction under section 80LA shall be available to such Unit subject to fulfilment of the conditions contained in the said section. Explanation.-For the purposes of this sub-section, the term "Unit" shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005). (5) Nothing contained in this section shall apply unless the option is exercised by the person in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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