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2023 (10) TMI 847 - AT - Income TaxRectification u/s 154 - charging of tax rate at 30% on the total income of the appellant - HELD THAT - As turnover of the appellant assessee during the previous year which is more than 50 crores, therefore CIT(A) was justified in confirming the applicable tax rate in respect of the appellant assessee @ 30% for the relevant assessment year 2018-19. Assessee s claim cannot be considered to be an apparent error on record to exercise the rectification powers u/s 154 of the Act because in the present case to exercise such powers, it would be required to recompute the turnover of the appellant assessee by disproving the turnover shown in column no. 4 of the copy of form 3CA and form 3CD for AY 2018-19. No infirmity and perversity in the order of the ld. CIT(A) to the facts on record in confirming the rectification order passed u/s 154 by the Assessing Officer, in rejecting the claim of the appellant. Decided against assessee.
Issues involved:
The judgment deals with the challenge against the decision of confirming the charging of tax rate at 30% on the total income of the appellant as per the rectification order passed u/s 154 of the Act. Issue 1: Rectification u/s 154 The appellant challenged the decision confirming the tax rate at 30% on total income, claiming the tax rate should be 25% due to turnover being less than 50 crores in the financial year 2017-18. The ld. CIT(A) rejected the claim based on turnover figures provided in form 3CA and form 3CD for AY 2018-19. The turnover was found to be above 50 crores, justifying the 30% tax rate. The Tribunal upheld the ld. CIT(A)'s decision, stating that the claim did not constitute an apparent error on record for rectification u/s 154. The Tribunal found no infirmity in the decision and upheld the rectification order passed by the Assessing Officer. The judgment provides a detailed analysis of the appellant's challenge regarding the tax rate applied to their total income. The Tribunal considered the turnover figures provided by the appellant in form 3CA and form 3CD for AY 2018-19. The turnover was found to be above 50 crores, leading to the application of the 30% tax rate. The Tribunal emphasized that the appellant's claim did not warrant rectification u/s 154, as it would require disproving the turnover figures provided. Consequently, the Tribunal upheld the decision of the ld. CIT(A) and rejected the appeal filed by the assessee. The judgment highlights the importance of accurate turnover figures in determining the applicable tax rate for an assessee. The Tribunal carefully examined the turnover details provided by the appellant and concluded that the turnover exceeded 50 crores, justifying the application of the 30% tax rate. The Tribunal reasoned that the appellant's claim for a lower tax rate did not meet the criteria for rectification u/s 154, as it would involve challenging the turnover figures presented. Ultimately, the Tribunal upheld the decision of the ld. CIT(A) and rejected the appellant's appeal, affirming the 30% tax rate on the total income.
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