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Facts
Shree Capital Services Ltd., an NBFC, filed its return of income, which was processed under Section 143(1) by the CPC. The CPC computed tax liability at 30% instead of the opted 22% under Section 115BAA, levied interest under Section 234B, and short-granted TDS. The CIT(A) partly allowed the appeal regarding the tax rate and TDS but dismissed the issue of condonation of delay for filing Form 10-IC.
Held
The Tribunal condoned the delay in filing the appeal. It set aside the CIT(A)'s order and remanded the matter to the Assessing Officer for recomputation of tax liability, directing the assessee to produce evidence for condonation of delay in filing Form 10-IC for the Section 115BAA option. The Assessing Officer was instructed to provide a reasonable opportunity of being heard.
Key Issues
Whether the tax rate was incorrectly computed at 30% instead of 22% under Section 115BAA, the unjustified levy of interest under Sections 234B & 234C, short credit of TDS, and the condonation of delay in filing Form 10-IC for opting Section 115BAA.
Sections Cited
250, 143(1), 253(3), 253(4), 253(5), 115BAA, 234B, 234C
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Addl/JCIT(A)- 2, Ludhiana [hereinafter referred to as Ld. ‘Addl/JCIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2023-24 dated 19.02.2025, which has been passed against the intimation order u/s 143(1) of the Act, dated 27.05.2024. 1. 1. The Registry has informed that the appeal filed by the assessee is barred by limitation by 28 days. A petition seeking condonation of delay has been filed by the assessee stating as under: “1.0 This is with reference to the appeal of Shree Capital Services Limited (hereinafter referred to as the "Appellant"), which has been filed before this Hon'ble Bench against the order of the Ld. CIT(A) u/s 250 dated 19-02-2025 for the Assessment Year 2023-24. As per provisions of Sec. 253(3), such appeal is required to be filed within two months from the end of the month I.T.A. No.: 1152/KOL/2025 Assessment Year: 2023-24 Shree Capital Services Ltd. in which the order sought to be appealed against is communicated, i.e. on or before 30-04-2025. 2.0 However, the concerned executive of the Company who was looking after the said matter has inadvertently miscalculated the due date to be 30- 05-2025 instead of 30-04-2025 and hence was under the bona fide belief that the last date for filing the appeal was 30-05-2025. Accordingly, the aforesaid appeal was filed on 28-05-2025, resulting in a short delay of 28 days.
0 It is respectfully submitted that the delay was neither intentional nor due to negligence, but purely due to a bona fide miscalculation of the limitation period. In view of the above, it is humbly submitted the as per the provisions of Sec 253(5), the Hon'ble Appellate Tribunal may admit an appeal after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period.
0 Further, it is humbly submitted that the provision limiting the time for filing the appeal may please be liberally interpreted so that the appropriate action to pursue remedy is allowed to the appellant by the law and is not deprived of the same for mere failure of technical procedure. The word "Sufficient Cause" may please be given liberal reconstruction so as to advance the substantial justice.
0 Based on the aforesaid, it is humbly prayed that the delay in presenting the captioned appeal may please be condoned and the appeal be admitted on merits, in the interest of substantial justice.”
Considering the petition for condonation of delay and the reasons stated therein, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication.
The assessee is in appeal before the Tribunal raising the following grounds of appeal:
“1. That on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified and erred in confirming the action of Dy. Director of Income Tax, CPC, Bengaluru [hereinafter referred to as "AO"] in computing tax liability @30% when the new tax regime u/s 115BAA has been duly opted in the tax audit report as well as in the return of income filed for the year under consideration. I.T.A. No.: 1152/KOL/2025 Assessment Year: 2023-24 Shree Capital Services Ltd.
That on the facts and in the circumstances of the case, the levy of interest u/s 234B & 234C is grossly unjustified.
That the appellant craves leave, to add, to amend, modify, rescind, supplement, or alter any of the grounds stated here-in-above, either before or at the time of hearing of this appeal.”
Brief facts of the case are that the assessee is a Non-Banking Financial Company (NBFC) engaged in the business of providing loans and making investment in shares and securities. The assessee had filed its return of income computing total income at ₹116,67,19,270/- under the normal provisions of the Income Tax Act, 1961 and after taking credit of total taxes paid for an amount of ₹28,56,15,730/-, the assessee claimed a refund of ₹2,48,900/- in the return of income. The return was processed vide intimation u/s 143(1) of the Act wherein the Ld. AO, CPC made certain adjustments in the computation of total income under the normal provisions of the Act and erroneous computation of tax liability @ 30% instead of 22% u/s 115BAA of the Act at ₹10,42,37,308/-, erroneous levy of interest u/s 234B of the Act at ₹1,51,17,172/- and short grant of TDS at ₹28,563/-. Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A) who, vide order dated 19.02.2025, dismissed Ground no. 2 holding that there was no fault in the Ld. AO’s order to not consider the assessee’s request for condonation of delay in filing Form No. 10-IC at the time of processing the return as no application for condonation of delay in filing Form No. 10-IC was filed with the respective Commissioner of Income-tax (Exemptions)/CCIT/DGIT but allowed Ground no. 3 for application of tax @25% as the turnover was below ₹400 Cr. and also Ground No. 6 relating to short credit of TDS raised by the assessee by issuing directions and accordingly partly allowed the appeal of the assessee. I.T.A. No.: 1152/KOL/2025 Assessment Year: 2023-24 Shree Capital Services Ltd.
Aggrieved with the order of the Ld. CIT(A), the assessee has filed the appeal before the Tribunal.
Rival contentions were heard and the submissions made have been examined. The Ld. AR requested that the matter may be remanded to the Ld. AO for application of correct rate of tax under the new regime opted by the assessee. In the interest of justice and fair play, it was considered by the Bench that the request of the assessee to remand the issue before the Ld. AO may be allowed so that a proper opportunity of being heard may be provided. Hence, after examining the facts of the case, we deem it appropriate to set aside the order of the Ld. CIT(A) and remand the matter to the Ld. AO for recomputation of tax liability as per law and the facts on record. The assessee shall produce evidence for condonation of delay in filing Form No. 10-IC and the appropriate order which shall be considered by the Ld. AO. Needless to say, the assessee shall be given a reasonable opportunity of being heard to make any further submission it wants to make in support of its grounds of appeal and shall not seek unnecessary adjournments. Accordingly, the grounds taken by the assessee in his appeal are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 27th October, 2025. [George Mathan] [Rakesh Mishra] Judicial Member Accountant Member Dated: 27.10.2025 Bidhan (Sr. P.S.) I.T.A. No.: 1152/KOL/2025 Assessment Year: 2023-24 Shree Capital Services Ltd. Copy of the order forwarded to:
Shree Capital Services Ltd., 21, Strand Road, Kolkata, West Bengal, 700001. 2. A.C.I.T., Circle-5(1), Kolkata.
Addl/JCIT(A)-2, Ludhiana.
CIT-
CIT(DR), Kolkata Benches, Kolkata.
Guard File. //// By order