MADHYA PRADESH RAJYA VAN VIKAS NIGAM LIMITED,TT NAGAR vs. CPC BANGALORE, HOBLI

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ITA 62/IND/2025Status: DisposedITAT Indore19 August 2025AY 2020-215 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee satisfied all three conditions stipulated by CBDT Circular No. 6/2022. These conditions were: (i) the return of income for AY 2020-21 was filed on or before the due date under Section 139(1); (ii) the assessee company opted for taxation under Section 115BAA in the 'Filing Status' of Part A-GEN of the ITR-6; and (iii) Form 10-IC was filed electronically before 30.06.2022. The Tribunal found that the assessee met these criteria, including filing the return on 09.02.2021 (before the due date of 15.02.2021), opting for Section 115BAA in the return, and filing Form 10-IC on 22.03.2021. Consequently, the delay in filing Form 10-IC was condoned as per the circular. The Tribunal directed the AO to allow the benefit of the concessional tax rate of 22% under Section 115BAA to the assessee and recompute the tax accordingly. No issue was expressly left undecided.

What were the facts?

The assessee, Madhya Pradesh Rajya Van Vikas Nigam, is a company that filed its return of income for Assessment Year 2020-21 claiming a concessional tax rate of 22% under Section 115BAA. The Assessing Officer (AO), CPC, Bengaluru, in an intimation under Section 143(1), charged tax at the regular rate of 30% on the grounds that Form 10-IC was filed belatedly. The Commissioner of Income-Tax (Appeals) upheld the AO's decision. The assessee appealed this order to the Income Tax Appellate Tribunal (ITAT), Indore Bench, challenging the denial of the concessional tax rate and the benefit of a CBDT circular.

What were the issues?

1. Whether the assessee is eligible for the concessional tax rate of 22% under Section 115BAA for AY 2020-21, despite the Form 10-IC being filed belatedly, when the return of income was filed within the due date and the option was exercised in the return? - Assessee's contention: The assessee argued that it fulfilled all conditions prescribed by CBDT Circular No. 6/2022, which condoned the delay in filing Form 10-IC for AY 2020-21 if the return was filed by the due date, the option under Section 115BAA was exercised in the return, and Form 10-IC was filed by the extended due date mentioned in the circular. The assessee claimed to have satisfied all these conditions. - Revenue's contention: The revenue relied on the orders of the lower authorities but could not controvert the assessee's submissions regarding the applicability of the CBDT circular.

Which sections of the Income-tax Act were involved?

Section 115BAA,Section 139(1),Section 119(2)(b),Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI

For Appellant: Ms. Padmawati Swammy Kanuja and Shri Satpal
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 18.08.2025Pronounced: 19.08.2025

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

1.

Feeling aggrieved by order of first appeal dated 22.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-Addl/JCIT(A)-11, Delhi [“CIT(A)”] which in turn arises out of intimation of assessment dated 20.12.2021 passed by learned CPC, Bengaluru [“AO”] u/s 143(1) of Income- tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2020-21, the assessee has filed this appeal on following grounds:

Madhya Pradesh Rajya Van Vikas Nigam AY 2020-21 “1.0 That the Ld. CIT(A) erred in upholding levy of full rate of tax at 30% instead of 22% prescribed under Sec 115BAA when the assessee has filed prescribed Form 10-IC under Sec 115BAA on 22 March 2021 and has filed return of income within prescribed time under Sec. 139(1) of the Act. 2.0 That the Ld. CIT(A) has erred in not granting benefit of circular of CBDT 6/2022 dt. 17 March 2022.”

2.

Heard the learned Representatives of both sides and case records perused.

3.

The issue in present case is very limited and does not require much elaboration. The assessee is a company. For AY 2020-21 under consideration, the assessee filed return of income claiming the benefit of concessional rate of tax @ 22% u/s 115BAA but the AO, in the aforesaid intimation passed u/s 143(1), charged tax at regular rate of tax @ 30% for the reason that the Form No. 10-IC was filed belatedly. The CIT(A) upheld AO’s action. However, on a careful consideration of the deliberations which took place during hearing, we find that the CBDT has issued Circular No. 6/2022 dated 17.03.2022, Para No. 3 of same reads as under:

“3. On consideration of the matter, with a view to avoid genuine hardship to the domestic companies in exercising the option u/s 115BAA of the Act, the Central Board of Direct Taxes, in exercise of the powers conferred under section 119(2)(b) of the Act, hereby directs that: The delay in filing of Form 10-IC as per Rule 21AE of the Rules for the previous year relevant to A.Y 2020-21 is condoned in cases where the following conditions are satisfied: (i) The return of income for AY 2020-21 has been filed on or before the due date specified under section 139(1) of the Act;

Madhya Pradesh Rajya Van Vikas Nigam AY 2020-21 (ii) The assessee company has opted for taxation u/s 115BAA of the Act in (e) of "Filing Status" in "Part A-GEN" of the Form of Return of Income ITR-6 and (iii) Form 10-IC is filed electronically on or before 30-6-2022 or 3 months from the end of the month in which this Circular is issued, whichever is later.” [underline supplied] 4. Ld. AR for assessee successfully demonstrated that the assessee satisfies all three conditions prescribed by CBDT:

No. Condition Factual position of Document/Paper- assessee Book Page No. (i) The return of AY 2020- Due date u/s 139(1) was Intimation u/s 21 has been filed on or 15.02.2021 and the 143(1) itself before due date u/s assessee filed return on shows these data

139(1) 09.02.2021 before due (Page 10 of Paper- date. Book)

(ii) The assessee has The assessee has done Form of ITR opted for taxation u/s this. downloaded from 115BAA in “filing website of status” in “Part A – department

GEN” of the return of (Page 39 of Paper- income Book)

Page 3 of 5 (iii) Form 10-IC is filed The assessee filed Form E-filing electronically before 10-IC on 22.03.2021 acknowledgement

30.06.2022 (Page 132-134 of Paper-Book)

5.

Therefore, Ld. prayed that in terms of CBDT Circular as aforesaid the delay in filing of Form No. 10-IC for availing the benefit of concessional tax rate u/s 115BAA stands condoned and being so, the AO must be directed to give benefit of section 115BAA to assessee and re-compute tax at concessional tax rate @ 22%.

6.

Ld. DR for revenue dutifully relied upon orders of lower authorities but, however, could not controvert the submissions made by Ld. AR.

7.

After a careful consideration, we find that assessee satisfies all three conditions stipulated by CBDT in its Circular. Therefore, the delay in filing of Form No. 10-IC stands condoned as per Circular. Being so, we direct the AO to allow the benefit of concessional tax rate @ 22% u/s 115BAA to assessee. Necessary tax computation shall be made by AO in accordance with section 115BAA. The assessee’s claim is allowed.

Order pronounced in open court on 19/08/2025

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