M/S. CHOLA BUSINESS SERVICES LTD.,CHENNAI vs. ITO, CORPORATE WARD 1 (3), CHENNAI

The assessee company was incorporated on 09.12.2004 and engaged in the business of supplying manpower services to various companies. The assessee has electronically filed its return of income for A.Y 2021-22 on 02.03.2022 declaring total income of Rs. 55,49,770/- and claiming refund of Rs.4,25,390/-. The CPC, Bengaluru in order passed u/s. 143(1) of the Act has computed the tax @ 30% instead of 22% computed by the assessee. The assessee has contended that it has filed Form-10IC on 15.12.2020 opting for the concessional tax rate u/s. 115BAA of the Act. The CPC, Bengaluru in the intimation has also mentioned that the assessee has opted for concessional tax rate u/s 115BAA of the Act, despite this the CPC has computed the tax @ 30%. The Ld. CIT(A) while observing in para 5.2 that the assessee has filed Form-10IC on time and also filed return of income u/s. 139 of the Act, has held that the assessee has not opted for taxation u/s. 115BAA of the Act. :- 3 -: 4. The Ld. Authorized Representative (A.R) of the assessee has argued that it is evident from the intimation notice itself that the assessee has opted for concessional tax rate u/s 115BAA of the Act which is mentioned in Sr. No.1 of intimation notice.

The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. The assessee has filed Form-10IC on 15.12.2020 opting for concessional tax rate u/s. 115BAA of the Act. The intimation notice u/s 143(1) for A.Y 2021-22 also clearly mentions at Sr. No.1 that the assessee has opted for concessional tax rate u/s 115BAA of the Act. Therefore, the Ld. CIT(A) was not justified to hold that the assessee has not opted for concessional tax rate u/s 115BAA. We accordingly set aside the order of Ld. CIT(A) and direct A.O to compute the tax at concessional rate as opted by the assessee.