Mumbai bench of Income Tax Appellate Tribunal (ITAT), mandated to validate the documents concerning Form 10-IC in case of dispute in the concessional rate of tax at the time of processing of income return.
The taxpayer Traxit Engineers Pvt. Ltd is a private company. Post income return filing for AY 2020-21 on 14.10.2020 declaring a total income of Rs. 1,06,77,810/- and had paid tax at Rs. 26,87,391/- under section 115BAA of the Income Tax Act, 1961.
Under section 143(1) the return was processed and the CPC has worked out tax at Rs. 35,64,680. The taxpayer has been dissatisfied and filed a plea before CIT(A). The plea gets dismissed by the CIT(A) due to the absence of an answer from the taxpayer. Hence the taxpayer filed another plea before the tribunal.
Representative of the taxpayer, Sanjay Parikh contends and mentioned that the taxpayer has filed Form 10-IC as per Rule 21AE of the Income Tax Rules and hence, is eligible for a concessional rate of tax under section 115BAA of the Act.
P.D. Chougule, the Department representative, submitted that the taxpayer does not appear before the CIT(A) despite providing distinct opportunities.
The CIT(A) to provide that the CIT(A) has correctly remanded the issue to the AO to investigate the claim that Form 10-IC is filed on or before 30.06.2022 and permit the concessional rate as per law.
The taxpayer has furnished the income return and has claimed the concessional tax rate under section 115BAA of the Act. As with the income return the Form 10IC was not filed under section 139(1) of the Act, at the time of passing an order under section 143(1), the CPC has rejected the concessional rate of tax and has imposed the tax at normal rates.
The taxpayer at the time of appellate processing does not answer to the notices issued via the CIT(A) calling for details. Hence the CIT(A) laid on Circular No. 6/2022 on 17.03.2022 and has asked the AO to verify whether the taxpayer has filed the Form 10-IC on or before 30.06.2022 and that the point could not be verified as the taxpayer does not appeared before the CIT(A).
Post reviewing the submissions of both parties the two-member bench of Padmavathy S, (Accountant member ) and Pavan Kumar Gadale, (Judicial Member) asked the taxpayer to provide the pertinent information in aid of the claim of applications of concessional rate of tax under section 115 BAA and co-operate with the appellate proceedings.
| Case Title | Traxit Engineers Pvt. Ltd. Vs. The Assessing Officer |
| Citation | I.T.A. No. 2793/Mum/2023 |
| Date | 06.12.2023 |
| Assessee By | Shri Sanjay Parikh |
| Revenue By | Shri P.D. Chougule (Addl.CIT) |
| ITAT Mumbai | Read Order |
