The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) ruled that the amended return furnished is not amounting to the non-filing of the return and the refusal of a lower tax rate under section 115BAA of the Income Tax Act,1961 is not correct.
The taxpayer, M/s.Ujjivan Small Finance Bank Limited is a small finance bank, furnishing the income return dated 21.12.2022 showing a total income of Rs.481,18,55,840.
The income return was furnished within the last date u/s 139(1) of the Income Tax Act,1961 as CBDT had prolonged the last date to 15.02.2021 vide Notification No.93/2020 on 31.12.2020.
On the date 30.03.2021, the taxpayer furnished the amended return showing a total income of Rs 481,22,57,300. The taxpayer has chosen the new tax regime u/s 115BAA of the Act.
The taxpayer does not furnish Form No.10-IC electronically beneath the last date he however claimed as the same would have been furnished in the physical form date 18.11.2021.
The taxpayers were taxed at the nominal rate and the advantages u/s 115BAA of the Act were still not presented however the interest u/s 234A, 234B and 234C of the Act were also applicable.
The CIT(A) then authorized the reasons for the deduction claimed u/s 80JJAA of the I.T.Act and further cancelled the advantages /s 115BAA by mentioning that the taxpayer had not completed the compliance as per the 3(i) of the Board Circular No.06/2022 dated 17.03.2022.
The section 115BAA of the act tax rate is 22 per cent rather than the 30 per cent rate as per the normal provision and was visible the CBDT as per the CBDT vide it’s Circular No.06/2022 (supra) stretched the due date time period for Form 10-IC form electronically till 30.06.2022 or 3 months or earlier from the month ending of the circular issued date or earlier.
Shri George George K, JM & Ms. Padmavathy S, AM Coram also saw the taxpayer has return filed as per the due date which was mentioned u/s 139(1) from the act and also saw that the taxpayer also made revised return consecutively which made the reason of filing the return as per the compliance u/s 139(1) of the Act.
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After which the tribunal made a correction of the CIT(A) decision and stated that the taxpayer is eligible to get the advantages of section 115BAA of the act which was otherwise seen as no filing of return u/s 139(1) of the act.
The representation was by the Sri.S.Ananthan, CA, and represented the Sri.Bijoy Kumar Panda, CIT-DR.
