SUPER ANTICO SOLUTIONS PRIVATE LIMITED,VADODARA vs. INCOME TAX OFFICER, VADODARA GUJARAT

ITA 1539/AHD/2026Status: DisposedITAT Ahmedabad07 October 2026AY 2023-20246 pages
AI SummaryRemanded

What were the facts?

The assessee, Super Antico Solutions Private Limited, filed its return of income for Assessment Year 2023-24 on 25.10.2023, declaring a total income of Rs. 1,36,86,620/- and opting for the concessional tax rate under Section 115BAB of the Income Tax Act. The Central Processing Centre (CPC) processed the return under Section 143(1) and did not consider the Section 115BAB option, calculating tax at the normal rate of 30%. A demand was raised. The assessee filed a rectification application under Section 154, which was also decided without allowing the benefit of Section 115BAB. The assessee's appeal to the Addl. CIT(A) was dismissed. The assessee is now in appeal before the ITAT.

What did the Tribunal hold?

The Tribunal held that the assessee had exercised the option under Section 115BAB by furnishing Form No. 10-ID. Section 115BAB(7) mandates that once the option is exercised in the prescribed manner for the first eligible assessment year, it applies to subsequent assessment years and cannot be withdrawn. The Tribunal found merit in the assessee's contention that the CPC was not justified in denying the benefit of Section 115BAB merely because no tax was computed under the said provision in AY 2020-21. However, the Tribunal also noted that the exercise of the option does not automatically grant entitlement to the concessional rate; it is subject to fulfilling the conditions prescribed under Section 115BAB(2). As it was not evident that the Assessing Officer had examined these conditions for the year under consideration, the Tribunal restored the issue to the jurisdictional Assessing Officer for fresh examination. The AO is to verify the fulfilment of conditions under Section 115BAB(2) for AY 2023-24 and then determine the tax liability. The assessee will be given an opportunity to be heard.

What were the issues?

1. Whether the Learned CIT(A) erred in confirming the denial of the concessional tax rate under Section 115BAB, despite the Appellant having duly exercised the option in the return of income for AY 2023-2024, and whether the intimation under Section 154 acknowledged the exercise of the option but computed tax under normal provisions, indicating a processing error. Assessee's contention: The option under Section 115BAB was exercised in the return of income for AY 2023-24. The intimation under Section 154 acknowledged this exercise, yet tax was computed under normal provisions, indicating a processing error. The assessee also argued that having filed Form No. 10-ID for AY 2020-21, the option was applicable for subsequent years and could not be withdrawn. The CIT(A) erred in relying on incorrect facts for AY 2022-23 and passing a non-speaking order. Revenue's contention: Though the assessee opted for taxation under Section 115BAB in AY 2020-21, no income was disclosed in the ITR for that year, and no tax calculation was made under that section in the intimation. For subsequent years, the CPC denied the benefit. The Revenue argued that no option under Section 115BAB was made for the first time in a year when tax was payable, and thus supported the lower authorities' orders.

Which sections of the Income-tax Act were involved?

Section 115BAB,Section 115BAB(7),Section 115BAB(2),Section 115BAB(1),Section 143(1),Section 154,Section 139

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD

Before: SHRI NARENDRA PRASAD SINHA & SHRI SANJAY KUMAR

For Appellant: Shri Tej Shah, AR
For Respondent: Shri Arvind Kumar Namdeo, Sr. DR
Hearing: 17.09.2026Pronounced: 07.10.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal has been filed by the Assessee against the order of Addl/JCIT (Appeal)-2, Hyderabad [hereinafter referred to as “Addl. CIT(A)”] dated 03.02.2026 for the Assessment Year (A.Y.) 2023-24 in the proceeding u/s 154 of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed its return of income for A.Y. 2023-24 on 25.10.2023 declaring total income of Rs.1,36,86,620/-. In the ITR, the assessee had calculated tax by adopting special tax rate mechanism as per section 115BAB of the Act. The return Super Antico Solutions Private Limited Vs ITO, A

The order continues below.

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