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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: SRI RAJPAL YADAV & DR. MANISH BORAD
order
: July 4th, 2023 ORDER
Per Manish Borad, Accountant Member:
This appeal filed by the assessee pertaining to the Assessment Year (in short ‘AY’) 2020-21 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the I.T.A. No.: 208/KOL/2023 Assessment Year: 2020-21 Great Media Technologies Pvt. Ltd. “Act”) by ld. Commissioner of Income-tax (Appeals), NFAC, Delhi [in short ld. “CIT(A)”] dated 14.02.2023 arising out of the assessment order framed u/s u/s 143(1) of the Act dated 23.12.2021.
At the outset, ld. Counsel for the assessee submitted that the issues raised in the instant appeal is squarely covered in favour of the assessee by the decision of this Tribunal in the case of A.R. Overseas Tradecom (P) Ltd. vs. DCIT in order dated 06.02.2023 and further stated that since the turnover of the assessee company is less than Rs. 400 Cr in the AY 2017- 18, the income of the assessee is liable to be taxed @ 25%. 3. On the other hand, ld. D/R vehemently argued supporting the orders of both the lower authorities. 4. We have heard rival contentions and perused the records placed before us. We notice that the assessee is a private limited company and filed the return of income for AY 2020-21 on 28.01.2021 [extended due date is 15.02.2021] declaring total income of Rs. 6,08,45,670/-. In the return of income, the assessee claimed the option u/s 115BA of the Act for coming under the tax slab of 25%. The said claim was denied by CPC. 5. Aggrieved, the assessee preferred appeal before ld. CIT(A) but failed to succeed as ld. CIT(A) observed that the claim of the assessee to fall u/s 115BA(2)(a) of the Act is not correct because the same is applicable to the companies which have been registered on or after 01.03.2016 whereas the assessee company I.T.A. No.: 208/KOL/2023 Assessment Year: 2020-21 Great Media Technologies Pvt. Ltd.
was incorporated on 19.05.2003. So far as this observation of ld. CIT(A) is concerned, we fail to find any infirmity. However, before us, ld. Counsel for the assessee claimed that the turnover of the assessee company is less than 400 Cr and therefore, as per the tax slab rate for domestic companies applicable for AY 2020-21, the assessee is liable to be taxed @ 25% only for the year under consideration. In support, reliance was placed on the decision of this Tribunal in the case of A.R. Overseas Tradecom (P) Ltd. (supra) wherein this Tribunal has observed as follows: “7. We have heard the rival contentions, perused the records placed before us. We notice that the assessee is private limited company which filed its return of income on 22.03.2021 for assessment year 2020-21. The assessee opted for a lower tax rate of 22% u/s 115BAA of the Act but failed to file the declaration of Form 10-IC before the due date of filing the return of income. However, since the assessee claimed the said relief u/s 115BAA of the Act in the income tax return, the Central Processing Centre (CPC) denied and calculated the tax @30%. A rectification application was filed on 06.01.2022 by the assessee stating that its turnover is less than 400 crores as stated in Finance Act 2020, assessee is liable to tax @25% and the same should have been applied by the CPC while processing the income- tax return. But CPC failed to give relief to the assessee. Aggrieved, assessee preferred appeal before the Id. CIT(A). But the Id. CIT(A) only focused on the issue regarding exercising of the option u/s 115BAA of the Act and dismissed the ground raised by the assessee. Before us, the Id. counsel for the assessee has contended that tax rate of 25% is applicable in its case and suitable direction may be given to the Assessing Officer.
8. We find that so far as applicability of section 115BAA of the Act is concerned, the assessee does not fall in this category as it failed to file the option on Form 10-IC before the due date of filing the return of income u/s 139(1) of the Act and therefore, tax rate of 22% is not applicable. However, as regards the application of tax rate of 25% is concerned, we find force in the contentions of the assessee. On perusal of the extracted provision of Finance Act 2020 placed in the I.T.A. No.: 208/KOL/2023 Assessment Year: 2020-21 Great Media Technologies Pvt. Ltd.