DEBADATTA PRIYADARSHSHAN,CUTTACK vs. ITO-WARD-KHURDA, KHURDA

It was the submission that the assessment year is 2015-2016, however, ld. Pr.CIT vide order u/s.263 of the Act has directed the Assessing Officer to apply rate of 60% under the provision of Section 115BBE of the Act. It was the submission that rate of 60% under the provision of Section 115BBE of the Act was not available for the assessment year 2015-2016. Ld. AR placed reliance on the decision of Hon’ble Madras High Court in the case of SMILE Microfinance Limited, passed in W.P.(MD) No.2078 of 2020, dated 19.11.2024 wherein the Hon’ble High Court has held in para 17 that the provision of Section 115BBE of the Act levying a rate of 60% came into effect from 01.04.2017. It was the submission that the impugned assessment year is 2015-2016. As the levy of 60% came w.e.f.01.04.2017, therefore, levy of 60% could not levied on the assessee.

In reply, ld. CIT-DR vehemently supported the order of the ld. Pr.CIT.

We have considered the rival submissions. A perusal of the provisions of Section 115BBE of the Act clearly shows that the rate of 60% has been brought to the statute w.e.f.01.04.2017, however, in the case of assessee the assessment year is 2015-2016. As the rate of 60% was not available in the statute book under the provisions of Section 115BBE of the Act for the assessment year 2015-2016, the direction given by the ld. Pr.CIT in his order u/s.263 of the Act is unsustainable in law and consequently, the order u/s.263 of the Act stands quashed.