RAMBALRAAM CHAINSS PRIVATE LIMITED,AGRA vs. INCOME TAX OFFICER WARD 1(1)(1), AGRA, AGRA

The only effective issue to be decided in this appeal is as to whether the income of the assessee could be determined as per the new concessional tax regime provided under section 115BAB of the Act or not.

I have heard the rival submissions and perused the materials available on record. The assessee is a private limited company engaged in the business of manufacturing gold chain ornaments (semi-finished). The assessee is eligible for the concessional tax regime under section 115BAB of the Act being a newly incorporated manufacturing company. The return of income for assessment year 2023-24 was filed by the assessee company on 29-9-2023 under section 139(1) of the Act. The learned CPC while processing the return issued an intimation under section 143(1) of the Act dated 22-12-2023 applying the tax rate under section 115BAA of the Act instead of section 115BAB of the Act. This error arose due to filing of Form 10 IC under section 115BAA of the Act on 10-2-2021 by the assessee due to inadvertence. The assessee however had duly rectified the same by filing the correct Form 10 ID under section 115BAB of the Act on 19-10- 2022. This had ultimately resulted in raising a tax demand on the assessee of Rs 98,450/- along with interest under section 234B and 234C of the Act by the learned CPC. When the matter was carried before the learned CITA with a delay of 36 days in preferring the appeal before the learned CITA, the learned CITA preferred not to condone the delay and dismissed the appeal of the assessee as not admitted. But I find that the assessee was prevented from sufficient cause from not preferring the appeal in time before the learned CITA. The affidavit of the managing director of the assessee company is already placed on record and hence we direct the learned CITA to condone the delay, admit the appeal of the assessee for adjudication and decide the dispute raised before him in accordance with law afresh. Needless to mention that the assessee be given reasonable opportunity of being heard. The assessee is at liberty to raise additional grounds, if any and furnish additional evidences, if any, in support of its contentions. With these directions, the grounds raised by the assessee are allowed for statistical purposes by restoring to the file of learned CITA.