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TMI Blog2025 (4) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... by it, therefore, it is incorrect on the part of the CPC to compute the tax rate at 30% on account of non filing of Form 10-IC which is only a procedural requirement. It was also submitted that the turnover of the assessee company for the assessment year 2020-21 was below Rs. 400 crores and therefore, the applicable tax rate is 25% as per the Finance Act, 2022. 4. However, the Ld. Addl / JCIT(A) was not satisfied and rejected the arguments advanced by the assessee by observing as under: "2...... The facts of the case in the light of the arguments made by the appellant are carefully considered. Section 115BAA of the Income Tax Act, 1961 was inserted by the Taxation Laws (Amendment) Act, 2019 w.e.f. 01-04-2020. As per the Section, 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 lower tax rate subject to satisfaction of conditions contained in sub-section(2) of the of the Section: (a) As per section (5) of section 115BAA of the Act Read with rule 21AE of the Income Tax Rules, 1962, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, I am of the opinion that the appellant domestic company has violated the provisions as per section (5) of section 115BAA of the Act Read with rule 21AE of the Income Tax Rules, 1962, by which the assessee company is required to submit Form 10-IC electronically on or before the due date of filing of return u/s 139(1) of the Act. Therefore, in the facts and circumstances of the case and in law, the Ld. Asst. Director of Income Tax, CPC was correct in undertaking the adjustment, when processing of the return of income, selection of the cases for further scrutiny, claim of the refunds of the assessee or all determined based on the return filed by the appellant company and when the provisions of the law and the relevant rules strictly provides that all necessary documents must be filed upto the due date for furnishing the Return of Income under sub-section (1) of Section 139, subsequent filing of any document cannot be considered for processing of the return. But in this case Form 10-IC has not been filed yet. Hence, the corresponding charging of tax at normal rates is upheld and the grounds of appeal raised by the appellant are hereby dismissed 5. In the result, the appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held that where assessee was not taxed at rate of 22 per cent as provided under section 115BAA on account of fact that it failed to file Form 10-IC, since assessee had filed a fresh Form 10-IC electronically, delay in filing Form 10-IC was to be condoned and a direction was to be issued to CBDT to process assessee's request contained in Form 10-IC. 9. Referring to the decision of the Hon'ble Madras High Court in the case of MRF Ltd. vs. CBDT (2025) 172 taxmann.com 776 (Mad) he submitted that the Hon'ble High Court in the said decision has held that where assessee opted for taxation under section 115BAA and failed to file Form No. 10-IC within extended time, consequently, assessee sought condonation of delay in filing Form 10-IC, since rejection of assessee's application would cause genuine hardship, portal was to be kept open to enable assessee to upload Form No. 10-IC. 10. He accordingly submitted that he has no objection if the matter is restored to the file of the Assessing Officer with a direction to compute the tax at lower rate as per the provisions of the Act. In his alternate contention, he submitted that since the turnover of the assessee is less than Rs. 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39(1) of the Act. 2. The assessee company has opted for taxation u/s 115BAA of the Act in (e) of "Filing Status" in "Part A-GEN" of the Form of Return of Income ITR-6 and 3. Form 10-IC is filed electronically on or before June 30, 2022 or 3 months from the end of the month in which this Circular is issued, whichever is later. 6. The Circular does not specifically state as to whether all three conditions have to be cumulatively complied with or the condition of the assessee can be condoned with regard to partial compliance or part compliance of the conditions in the Circular. 7. Be that as it may, it is not in dispute that the assessee has filed the return of income for the assessment year 2020-21 on or before the due dates specified under Section 139(1) of the Act. Equally, it is not in dispute that the assessee company has opted for taxation under Section 115BAA of the Act. This option was available to the assessee by opting the option given in filing status in Part A- GE of the form by return of income in ITR6. This conduct of the assessee will undoubtedly go to show that the assessee intended to opt to pay tax under the simplified tax regime as also accepted in the Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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