MA SHANTI AGRO FOODS PVT. LTD.,,BIRBHUM vs. ACIT, CC 2(1),, KOLKATA

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ITA 570/KOL/2025Status: DisposedITAT Kolkata27 August 2025AY 2021-22Bench: the Tribunal: “1. For that in view of facts and circumstances of the case, learned Commissioner of Income Tax (Appeal), NFAC erred on facts as well as in law in confirming the action of learned Assessing Officer in applying tax Rates applicable for Old Regime overlooking the fact that the assessee have opted for tax rates prescribed under Section 115BAA of the I.T. Act, 1961 1.1 For that, without prejudice to the above, the learned CIT (appeal) erred on facts as well as in law in not consid5 pages

AI SummaryDismissed

Facts

The assessee, Ma Shanti Agro Foods Pvt. Ltd., filed its ITR for AY 2021-22, opting for the new tax regime under Section 115BAA. The CPC issued an intimation u/s 143(1) applying old tax rates, resulting in a higher tax liability and a disallowance u/s 36(1)(va). The assessee appealed to the CIT(A) and subsequently to the Tribunal.

Held

During the Tribunal proceedings, the CPC rectified its intimation u/s 154, applying the tax rates specified in Section 115BAA, thereby resolving the primary dispute. Consequently, the assessee requested to withdraw the appeal, and the Tribunal dismissed it as withdrawn, noting that other grounds were also not pressed.

Key Issues

Whether the CPC erred in applying old tax rates instead of Section 115BAA rates; Condonation of delay in filing Form 10IC; Validity of disallowance u/s 36(1)(va).

Sections Cited

115BAA, 143(1), 250, 119(2)(b), 154, 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

For Appellant: Ms. Sharin Nessa, AR

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-26, Kolkata [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for AY 2021-22 dated 07.02.2025, which has been passed against the intimation u/s 143(1) of the Act, dated 13.11.2022 issued by the DDIT, CPC, Bengaluru, (‘the Ld. AO’).

The assessee has raised the following grounds of appeal before the Tribunal:

“1. For that in view of facts and circumstances of the case, learned Commissioner of Income Tax (Appeal), NFAC erred on facts as well as in law in confirming the action of learned Assessing Officer in applying tax Rates applicable for Old Regime overlooking the fact that the assessee have opted for tax rates prescribed under section 115BAA of the I.T. Act, 1961 I.T.A. No.: 570/KOL/2025 Assessment Year: 2021-22 Ma Shanti Agro Foods Pvt. Ltd.

1 For that, without prejudice to the above, the learned CIT (appeal) erred on facts as well as in law in not considering the fact that the delay in filing Form 10IC up to 31/01/2024 have been condoned by Hon'ble Central Board of Direct Taxes vide circular No. 19/2023 dated the 23rd October, 2023, issued u.s. 119(2)(b) of the Income Tax Act, 1961,as Form 10 IC was duly filed on 07.11.2023 vide e-Filing Acknowledgement No: 505806450071123 i.e. within 31.01.2024,

1.2.

For that, without prejudice to the above and on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in incorrectly concluding that the assessee should have filed Application for condonation of delay in filing Form 10IC before the Principal Commissioner of Income Tax, ignoring the fact that delay up to 3 months from the end the month in which Circular dt. 23.10.2023 was issued (i.e. delay of 3 months up to 31/01/2024)