9911796707
TMI Blog2024 (8) TMI 1519X X X X Extracts X X X X X X X X Extracts X X X X ..... nd then in rectification order sec 154 dated 07.07.2022 erred in not allowing the rate of tax as per Sec 115BAA of 22 percent on grounds of non- filing of form 10 1CC. 2. Without prejudice to ground no 1 The learned ITO CPC in its intimation order sec 143 (1) and then in rectification order sec 154 dated 07.07.2022 has erred in applying the normal rate of tax 30 percent whereas the correct rate is 25 percent since the turnover of the company in financial year 18 19 and in the current financial year is less than 400 crores. 3. Without prejudice to ground no 1 The Learned Asst Director of Income Tax erred in not deducting share of profit from firm of Rs. 88, 88,576/- net figure (share of profit Rs 18950744 less share of firm tax de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CPC, Bengaluru u/s. 154 of the Act. The assessee being further aggrieved with this order preferred the present appeal before us. 4. We have gone through the record alongwith order of CPC, Bengaluru and order of the Ld. CIT (A). It is observed that the assessee filed its return of income well within the time prescribed u/s. 139(1) of the Act and opted for concessional rate of tax @ 22% u/s. 115BAA of the Act in its return of income. It is pertinent to mention here that this is the first year of operation of section 115BAA of the Act and COVID period was also there. For ready reference we are reproducing herein below the provisions of section 115BAA of the Act alongwith relevant rule as under: Section - 115BAA, Income-tax Act, 1961 - FA, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of section 80JJAA or section 80M]; (ii) without set off of any loss carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); (iii) without set off of any loss or allowance for unabsorbed depreciation deemed so under section 72A, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); and (iv) by claiming the depreciation, if any, under any provision of section 32, except clause (iia) of sub-section (1) of the said section, determined in such manner as may be prescribed. (3) The loss and depreciation referred to in clause (ii) and clause (iii) of sub-section (2) shall be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year commencing on or after the 1st day of April, 2020 and such option once exercised shall apply to subsequent assessment years: Provided that in case of a person, where the option exercised by it under section 115BAB has been rendered invalid due to violation of conditions contained in sub-clause (ii) or sub-clause (iii) of clause (a), or clause (b) of sub-section (2) of said section, such person may exercise option under this section: Provided further that once the option has been exercised for any previous year, it cannot be subsequently withdrawn for the same or any other previous year. Rule - 21AE, Income-tax Rules, 1962 Exercise of option under sub-section (5) of section 115BAA. 21AE. (1) The option to be exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Form No. ITR-6 and return was filed well within the time prescribed u/s. 139(1) of the Act. 6. The provisions of Section 143(1) of the Act are clear in their requirement that prior to passing an intimation order, the Assessing Officer must provide the taxpayer with a reasonable opportunity to present their case and address any concerns or discrepancies. It is incumbent upon the tax authorities to afford taxpayers a fair hearing and a chance to clarify or contest any issues related to their tax assessment. In this specific case, it was not provided with any such opportunity to be heard. As observed that the assessee has not filed Form No. 10IC for claiming concessional rate of tax but on the other hand CPC, Bengaluru also has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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