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Facts
The Revenue filed an appeal against the order of the Addl. CIT(A) regarding the tax rate applicable to the assessee for AY 2018-19. There was a delay of 8 days in filing the appeal, which was condoned by the Tribunal.
Held
The Tribunal upheld the order of the Addl. CIT(A), stating that the assessee's total turnover for the previous year 2015-16 was less than Rs. 50 Crore. Therefore, the rate of tax applicable for AY 2018-19 is 25%.
Key Issues
The primary issue was to determine the correct rate of tax applicable to the assessee based on its total turnover for the previous year, specifically whether it falls under the 25% or 30% tax bracket.
Sections Cited
143(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the Revenue for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax, Appeal, Addl/JCIT(A)-1, Mumbai [hereinafter “Addl. CIT(A)”] dated 21.10.2024.
There is a delay of 08 days in filing the appeal by the Revenue. The Revenue has filed condonation petition/affidavit stating the :- 2 -:
reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The effective ground of appeal
in this appeal of Revenue is against the order of Ld. Addl. CIT(A) holding the rate of tax @ 25% as against 30% computed by the CPC, Bengaluru as the turnover of assessee is less than
50. Crore.
4. The assessee-company had computed the tax payable @25% as per Finance Act 2017 as the turnover of the assessee-company in the previous year 2015-16 was less than Rs. 50 Cr. However, CPC in the intimation u/s 143(1) has computed the tax @ 30%. On appeal, the Ld. Addl. CIT(A) noted that the turnover of the company in previous year 2015-16 is Rs. 46.79 Cr., which is less than Rs. 50 Cr. and therefore, held that the assessee is liable to be taxed @ 25%.
The Ld. Departmental Representative has supported the order of CPC.
ITA No.47/Chny/2025 :- 3 -:
We have heard the rival submissions, and perused the materials available on record. We find that the assessee’s total revenue for Previous year 2015-16 is Rs. 48,72,17,725/-, which includes revenue from operation of Rs.46,79,12,993/- and other income of Rs.1,93,04,731/-. As per Finance Act 2018, if the total turnover of the company for previous year 2015-16 is less than Rs. 50 Cr., the rate of tax applicable in A.Y 2018-19 is 25%. In view of the above, we do not find any infirmity in the order of Ld. Addl. CIT(A) and we uphold the same.
In the result, the appeal filed by the Revenue is dismissed.
Order pronounced on 17th April, 2025.