SGJ ENTERPRISES PRIVATE LIMITED,PATIALA vs. DCIT, CIRCLE, PATIALA

It emerges that the assessee being resident corporate assessee filed return of income on 22-12-2020 declaring income of Rs.60.45 Lacs. The CPC processed the same u/s 143(1) and applied normal tax rate of 30% as applicable to companies. On the other hand, the assessee had applied concessional rate of 25%. Aggrieved, the assessee preferred rectification u/s 154 which was also rejected by CPC vide intimation dated 21-06-2022. The Ld. CIT(A) rejected the appeal on the ground that the assessee could have filed appeal against intimation u/s 143(1) but the assessee filed appeal against intimation order issued u/s 154. The original cause arises at the stage of proceedings u/s 143(1) and accordingly, the issue could not be adjudicated in the present appeal. In the result, the appeal was dismissed against which the assessee is in further appeal before us.

We are of the opinion that separate cause of action had arisen for the assessee i.e., first against intimation passed u/s 143(1) and secondly, against rectification intimation passed u/s 154. Both intimations are appealable before Ld. CIT(A). Therefore, the appeal could not be dismissed merely on technical ground and the appellate door could not be shut against rectification intimation. Having said so, we find that the lower rate of tax was not claimed by the assessee u/s 115BAA but the assessee has claimed general concessional rate of tax of 25% which was applicable to all corporate assessee having turnover of less than Rs.250 Crores during previous year 2016-17. The Ld. AR has placed on record financial statements for FY 2016-17 which would indicate that the turnover of the assessee, in this year, is merely Rs.2.07 Crores. Accordingly, the assessee is eligible to claim concessional basic rate of tax of 25%. Therefore, Ld. AO is directed to make correct computations of tax payable by the assessee. The basic rate of tax as applicable to the assessee would be 25%. We order so.