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Income Tax Appellate Tribunal, “B” BENCH, KOLKATA
Before: DR. MANISH BORAD, HON’BLE & SHRI SONJOY SARMA, HON’BLE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The above captioned appeal is directed at the instance of the revenue against the order of the National Faceless Appeal Centre, (hereinafter the “ld. CIT(A)”) dt. 21/02/2023, passed u/s 250 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year 2020-21. 2. The sole grievance of the assessee is that the ld. CIT(A) erred in rejecting the claim of the assessee for reduced rate of tax provided u/s 115BBA of Act for non-submission of Form No. 10-IC as a result of which, income of the assessee has been taxed @ 30% instead of @ 22%.
At the time of hearing, application has been filed by the assessee which states for non-submission of Form 10-IC, assessee was denied the claim of reduced rate of tax provided u/s 115BBA of the Act. It is also stated that after filing of the appeal before this Tribunal, the assessee
2 Assessment Year: 2020-21 M/s. KHR Hospitality India Ltd. also filed an application for condonation of delay before ld. Pr. CIT – 1, Kolkata on 01/06/2023 and the said delay in filing of Form 10(1)(c) has condoned by the ld. Pr. CIT vide order dt. 03/07/2023. It was also submitted that since the delay in filing Form 10IC has been condoned, the present appeal becomes infructuous and the assessee has requested to withdraw this appeal with a request that even though the ld. Pr. CIT has condoned the delay, but no access was given in the Income-tax portal for filing of Form 10IC.
We have gone through the application/written submission filed by the assessee and the relevant documents attached thereto. Admittedly there was a delay in filing From 10IC, which prevented the assessee from claiming the benefit provided u/s 115BBA of the Act. However, the delay in filing Form 10IC has been condoned by the ld. Pr. CIT vide order dt. 03/07/2023 and the said order is reproduced below:-
P.S.:- This space has been left blank intentionally. Assessment Year: 2020-21 M/s. KHR Hospitality India Ltd.
4 Assessment Year: 2020-21 M/s. KHR Hospitality India Ltd.
From perusal of the above order of the ld. Pr. CIT, we notice that the delay in filing Form 10IC has been condoned and, therefore, the assessee deserves benefit of reduced rate of taxation i.e., 22% in place of 30% levied. We also notice that Form 10IC was not filed by the assessee
5 Assessment Year: 2020-21 M/s. KHR Hospitality India Ltd. on account of technical problem faced on the income tax portal and vide CBDT Circular No. 6/2022 [F.No.173/32/2022 – ITA -1] dated 17/03/2022, the time limit to file the form was extended to 30/06/2022. Further, even if the delay in filing Form 10IC is condoned but as claimed by the assessee, it is still no having the access for filing the Form 10IC. This being a technical aspect, needs to be taken care of by the revenue authorities and the income of the assessee needs to be taxed @ 22% as against 30% levied by the CPC. Accordingly, Ground Nos. 1, 2, 3, 4 & 5 raised by the assessee are hereby allowed. So far as Ground No. 6 is concerned, the same has been raised alternatively stating that the normal tax rate applicable for the companies for Assessment Year 2020-21 is 25% and not 20%. However, as we have already allowed Ground Nos. 1 to 5, dealing with Ground No. 6 will be merely academic in nature and hence the same is not dealt with.
In the result, appeal of the assessee is allowed. Order pronounced in the Court on 30th November, 2023 at Kolkata. (SONJOY SARMA) ACCOUNTANT MEMBER Kolkata, Dated 30/11/2023 *SC SrPs
6 Assessment Year: 2020-21 M/s. KHR Hospitality India Ltd.
आदेश क" "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Assessee
""यथ" / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु" अपील ( ) / The CIT(A)- 5. िवभागीय "ितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाड" फाई/ Guard file.
आदेशानुसार/ BY ORDER