Section 115BAA of the Income Tax Act

Income-tax Act, 2025: ss.200, 205

Section 115BAA of the Income-tax Act, 1961 corresponds to section 200 (Tax on income of certain domestic companies) and section 205 (Conditions for tax on income of certain companies and cooperative societies) of the Income-tax Act, 2025.

Read section 200 of the 2025 ActRead section 205 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 115BAA is CIT v. Fine Jewellery (India) Ltd. (372 ITR 303), cited in 93 of the 225 judgments on BharatTax that turn on this section.

Leading authorities on Section 115BAA

CIT v. Fine Jewellery (India) Ltd.
372 ITR 303 · 2015 · High Court
93
citing judgments

An assessment order is not erroneous and prejudicial to the revenue merely because it does not explicitly discuss an issue for which the Assessing Officer had raised queries and the assessee had provided a response. In such a scenario, the Principal Commissioner cannot invoke revisionary powers under Section 263.

Mahalakshmi Sugar Mills Co. v. CIT
123 ITR 429 · 1980 · Supreme Court
70
citing judgments

Payments that are compensatory in nature, such as interest paid for the delayed payment of statutory dues like cess, are an allowable business deduction under section 37(1) of the Income-tax Act. Such payments are not considered a penalty for an infringement of law.

Triveni Engg. Works Ltd. v. CIT
144 ITR 732 · 1983 · High Court
61
citing judgments

Interest on arrears of tax is compensatory in nature, not penal, and is therefore an allowable deduction under the Income-tax Act. This decision reversed a previous Full Bench ruling.

Kumar Jagdish Chandra Sinha v. CIT
220 ITR 67 · 1996 · Supreme Court
23
citing judgments

A revised return cannot be used to rectify a deliberate omission or wilful mistake made in the original return.

CIT v. Strawboard Manufacturing Company Limited
177 ITR 431 · 1989 · Supreme Court
22
citing judgments

Laws providing tax concessions to encourage industrial activity are to be liberally construed. This principle is applied to ensure that the object of such beneficial provisions is achieved.

10B in Pr. CIT v. Wipro Ltd.
288 Taxmann 491 · 2022 · Supreme Court
22
citing judgments
Manoj Ahuja (Minor) & ANR. v. Inspecting Assistant Commissioner
150 ITR 696 · 1984 · High Court
17
citing judgments

An assessee cannot suffer due to a mistake made by their auditor or counsel. The courts will condone delays or delete additions made on account of such errors if reasonable cause is shown.

Vinit Ranawat v. ACIT
88 Taxmann.com 428 · 2017 · Reported
16
citing judgments

No income tax addition can be made based on documents seized from a third party if there is no corroborative evidence or business connection linking the assessee to that third party.

CIT v. Sunita Dhaddha
100 Taxmann.com 526 · 2018 · Supreme Court
15
citing judgments
Aprameya Engineering Ltd. v. ITO
164 Taxmann.com 740 · 2024 · ITAT
15
citing judgments

Delay in filing Form 10-IC, which is a procedural requirement for claiming the benefit of section 115BAA, should not invalidate the assessee's substantive right to such benefit.

Judgments on Section 115BAA

Aprameya Engineering Limited, Ahmedabad vs. Ward 1(1)(1), Income Tax Officer, Ahmedabad

In the result, the order of the CIT(A) is set aside, and the appeal of the assessee is partly allowed

ITA 456/AHD/2024[2022-23]Status: DisposedITAT Ahmedabad11 Jun 2024AY 2022-23

Bench: Shri Siddhartha Nautiyal & Shri Makarand V. Mahadeokar, Accountnat Member Assessment Year: 2022-23 Aprameya Engineering Limited The Income Tax Officer 908, 9Th Floor, Vs Ward-1(1)(1) Venus Atlantis Ahmedabad Corporate Park Anandnagar, Prahlad Nagar Ahmedabad – 380 015 (Gujarat) Pan: Aawca 3138 N अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Sunil Talati, Ca Revenue By : Shri Ketan Gajjar, Sr.Dr सुनवाई क" तार"ख/Date Of Hearing : 03/06/2024 घोषणा क" तार"ख /Date Of Pronouncement: 11/06/2024 आदेश/O R D E R Per Makarand V. Mahadeokarthis Appeal By The Assessee Is Directed Against The Order Of The Add/Jt. Commissioner Of Income Tax (Appeals) – 5 Mumbai (Hereinafter Referred As “The Cit(A)”), Dated 23-02-2024, Which Dismissed The Assessee'S Appeal Against The Intimation Under Section 143(1) Of The Income Tax Act, 1961 (Hereinafter Referred As “The Act”), Passed By The Central Processing Centre (Cpc) For The Assessment Year (Ay) 2022-23. The Primary Issue Is The Rejection Of The Assessee'S Claim For Taxation At A Lower Rate Under Section Aprameya Engineering Ltd. Vs. Ito Asst. Year : 2022-23

For Appellant: Shri Sunil Talati, CAFor Respondent: Shri Ketan Gajjar, Sr.DR
Section 115BSection 119(2)(b)Section 143(1)