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TMI Blog2024 (7) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 139(1) for furnishing the return of income for any previous year relevant to the assessment year commencing on or after 1st April, 2020 and it is also provided that such option once exercised shall apply to subsequent years. 2nd proviso to section 115BAA(5) provides that once the option has been exercised for any previous year, then it cannot be subsequently withdrawn for the same or any other previous year. Now in the instant case, the fact is not disputed at the end of revenue authorities that the assessee opted for section 115BAA for the first time for A.Y. 2020-21 and Form 10IC filed on 07.02.2021 and further the assessee was allowed the option exercised for lower tax rate for A.Y. 2020-21. Once the assessee has validly op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rounds if any, shall be argued and urged at the time of hearing . 3. The assessee has requested for adjournment. However, considering the grounds of appeal and perusal of records, I decide to adjudicate the appeal on merit on the basis of available records and submissions of the ld. D.R. 4. The sold grievance of the assessee is that ld. CIT(Appeals) was not justified in confirming the rate of tax charged @ 40% instead of 22%, even when the assessee has exercised the option under section 115BAA(5) of the Act. 5. The facts in brief are that the assessee is a Private Limited Company and it furnished its return of income on 12.10.2023, which was well before the due date for A.Y. 2023-24. In the return, the assessee has calculated tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hstanding anything contained in this Act but subject to the provisions of this Chapter, other than those mentioned under section 115BA and section 115BAB, 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 the rate of twenty-two per cent., if the conditions contained in sub-section (2) are satisfied: Provided that where the person fails to satisfy the conditions contained in sub-section (2) in any previous year, the option shall become invalid in respect of the assessment year relevant to that previous year and subsequent assessment years and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubsequent year: Provided that where there is a depreciation allowance in respect of a block of asset which has not been given full effect to 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 modifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has validly filed option on Form 10IC for A.Y. 2020-21 and has been given the benefit of section 115BAA of the Act and has been taxed @ 22% only. The only question before me is whether the assessee is required to opt for falling under section 115BAA of the Act in each year of its filing the income tax return or not. Sub-section (5) of section 115BAA provides that nothing contained in section 115BAA of the Act shall apply if the option is exercised by the person in the prescribed manner on or before the due date specified under section 139(1) for furnishing the return of income for any previous year relevant to the assessment year commencing on or after 1st April, 2020 and it is also provided that such option once exercised shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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