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Facts
The assessee opted for the concessional tax rate under Section 115BAB. The Assessing Officer denied this option, which was upheld by the CIT(A). The denial was based on the Form 10ID not mentioning the date of commencement of manufacturing/production.
Held
The Tribunal held that the assessee's balance sheet and other books of accounts, indicating consumption of raw materials and depreciation, provided sufficient material to conclude the commencement of production. Therefore, the assessee's ground was accepted.
Key Issues
Whether the denial of concessional taxation under Section 115BAB was justified due to the omission of the manufacturing/production commencement date in Form 10ID, despite other evidence of production.
Sections Cited
143(1), 115BAB, 154
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
Asstt. Year : 2024-25 Jindal Cement Industries Pvt. Ltd. Vs Income Tax Officer, (Formerly known as Jindal Panther Ward-13(3), Cement Pvt. Ltd.), DSM 648, 6th New Delhi-110002 Floor, DLF Towers, Najafgarh Road, Shivaji Marg, New Delhi-110015 (APPELLANT) (RESPONDENT) PAN No. AADCW0091M Assessee by: Sh. Salil Kapoor, Adv. & Sh. Sumit Lalchandani, Adv. Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 30.10.2025 Date of Pronouncement: 30.10.2025 ORDER
This assessee’s appeal for Assessment Year 2024-25, arises against the Addl/JCIT(A)-2, Hyderabad’s DIN & order No. ITBA/APL/S/250/2025-26/1079358436(1) dated 07.08.2025, in proceedings u/s 143(1) of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It transpires during the course of hearing that the learned CIT(A) has affirmed the CPC’s processing dated 02.12.2024 declining the assessee’s claim of assessment under the “new” scheme u/s 115BAB of the Act; vide the following detailed discussion:
“5. Decision: 5.1 The Appellant’s Grounds of Appeal, Statement of 5.1 The Appellant’s Grounds of Appeal, Statement of 5.1 The Appellant’s Grounds of Appeal, Statement of Facts, Return of Income for the relevant AYs 2024-25. Facts, Return of Income for the relevant AYs 2024 Facts, Return of Income for the relevant AYs 2024 2023-24, the Form 10ID and the Orders u/s 143(1) of the 24, the Form 10ID and the Orders u/s 143(1) of the 24, the Form 10ID and the Orders u/s 143(1) of the Act for the AYs 2023 Act for the AYs 2023-24 and 2024-25 have been perused 25 have been perused carefully. The sole issue in the appeal is the denial of carefully. The sole issue in the appeal is the denial of carefully. The sole issue in the appeal is the denial of concessional rate of taxation u/s 115BAB of the Act. The concessional rate of taxation u/s 115BAB of the Act. The concessional rate of taxation u/s 115BAB of the Act. The appellant has opted for the same in the AY 2023-24. appellant has opted for the same in the AY 2023 appellant has opted for the same in the AY 2023 Form 10ID had been filed within the Form 10ID had been filed within the due date of filing of due date of filing of return of Income for the said AY. However, it is found return of Income for the said AY. However, it is found return of Income for the said AY. However, it is found that the taxation opted for u/s 115 BAB of the Act has that the taxation opted for u/s 115 BAB of the Act has that the taxation opted for u/s 115 BAB of the Act has been denied in the AY 2023 been denied in the AY 2023-24 vide Intimation Order u/s 24 vide Intimation Order u/s 143(1) of the Act dated 26.11.2023. Thereafter in Order 143(1) of the Act dated 26.11.2023. Thereafter in Order 143(1) of the Act dated 26.11.2023. Thereafter in Order u/s 154 of the Act dated 07.01.2025 also, the Appellant he Act dated 07.01.2025 also, the Appellant he Act dated 07.01.2025 also, the Appellant has not been given relief. Consequentially, therefore, the has not been given relief. Consequentially, therefore, the has not been given relief. Consequentially, therefore, the taxation u/s 115 BAB of the Act has been denied in AY taxation u/s 115 BAB of the Act has been denied in AY taxation u/s 115 BAB of the Act has been denied in AY 2024-25 also. The Appellant has filed an Appeal against 25 also. The Appellant has filed an Appeal against 25 also. The Appellant has filed an Appeal against the Order u/s 154 of the Act dated 07.01.20 the Order u/s 154 of the Act dated 07.01.2025 pertaining 25 pertaining to AY 2023-24 also, which is pending for adjudication. 24 also, which is pending for adjudication. 24 also, which is pending for adjudication. The extract of Form 10ID filed on 26.10.2023 is as The extract of Form 10ID filed on 26.10.2023 is as The extract of Form 10ID filed on 26.10.2023 is as below:
Jindal Cement Industries Pvt. Ltd. 5.2 As per Section 115BAB (2)(a) of the Act, one of the conditions for availing the taxation u/s 115BAB of the Act is that the company should have been set up and registered on or after 01.10.2019 and has commenced manufacturing or production of an article or thing on or before 31.03.2023 (amended as 31.03.2024 by Finance Act, 2022 subsequently). In the instant case, as per Form 10ID as above, the Date on which the company was set up or registered is stated to be 21.07.2021, however the column of date of commencement of manufacturing / production is stated to be “–“. Thus the date of commencement of manufacturing / production is not mentioned in Form 10-ID. Thus it is ascertained that the taxation u/s 115 BAB could have possibly been denied due to the above declaration in Form 10ID itself. Therefore, the disallowance is held to be correct and the Assessee’s Appeal is dismissed.” 3.1 This is what leaves the assessee aggrieved.
I have given my thoughtful consideration to the assessee’s and the Revenues vehement rival submissions. Learned departmental representative seeks to buttress the point that since the assessee’s very claim stands declined in the preceding assessment year as per CIT(A) above extracted discussion, the tribunal ought to follow judicial consistency to affirm the impugned disallowance of assessment u/s 115BAB herein as well.
I find no reason to express my agreement with the Revenue’s stand. It is made clear that the new regime of assessment u/s 115BAB comes into play in an instance wherein a company is set up and registered on or after the first day of October 2019 subject to a further rider that it commences manufacturing or production of article or things on or before Jindal Cement Industries Pvt. Ltd. 31.03.2024. The assessee has filed it’s balance sheet and other relevant books of accounts indicating to have consumed raw material cost of Rs.1,59,000/- as well as depreciation and other expenditure etc. The tribunal is of the considered view that all this forms sufficient material to conclude the assessee’s commencement of production under the above statutory provision. Faced with this situation, I hereby accept the assessee’s instant sole substantive ground and direct the learned assessing authority to assess it under the new regime u/s 115BAB of the Act in very terms. Ordered accordingly.