FALCON BUS LINES PRIVATE LIMITED,MUMBAI vs. DCIT 5(1)(1), MUMBAI

ITA 7271/MUM/2026Status: DisposedITAT Mumbai18 September 2026AY 2024-256 pages
AI SummaryAllowed

What were the facts?

The assessee, a domestic company, opted for concessional tax under section 115BAA in AY 2023-24, which was accepted. For AY 2024-25, the CPC denied this benefit during processing under section 143(1), despite the option being validly exercised and accepted previously.

What did the Tribunal hold?

The Tribunal held that once an option under section 115BAA is validly exercised, it automatically applies to subsequent assessment years as per section 115BAA(5), unless the conditions are violated. The CPC could not deny the benefit for the intervening year without any such finding.

What were the issues?

Whether the benefit of concessional tax under section 115BAA, once validly exercised and accepted, continues for subsequent assessment years without a fresh exercise of option, and if denial by CPC without specific findings is justified.

Which sections of the Income-tax Act were involved?

Section 115BAA,Section 143(1),Section 154

AI-generated summary — verify with the full judgment below

Before: SHRI AMIT SHUKLA & SHRI ARUN KHODPIA

For Appellant: Shri Bhupendra Shah
For Respondent: Shri Ravi Teja (Sr. DR)
Hearing: 18.09.2026Pronounced: 18.09.2026

PER AMIT SHUKLA (J.M):

The aforesaid appeal has been filed by the assessee against the order passed by the learned Commissioner of Income-tax (Appeals) in relation to the intimation issued by the Centralised Processing Centre under section 143(1) of the Income-tax Act, 1961, for the Assessment Year 2024–25 and the consequential orders passed under section 154. The assessee has principally challenged the denial of the concessional rate of tax under section P a g e | 2 A.Y. 2024-25 Falcon Bus Lines Pvt. Ltd. 115BAA, despite the option under the said provision having been validly exercised an

The order continues below.

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