The benefit of lower rate of income tax of 15% under Section 115BAB allowed to Company by Kolkata ITAT
Hon’ble ITAT, Kolkata Bench has held that the Assessee Company is legally entitled to claim the benefit of lower rate of income tax of 15% under Section 115BAB for the AY 2023-24.
The brief facts of the case were that though the appellant had opted for Section 115BAB in the return of income for the previous AY 2022-23 and the prescribed Form 10ID was filed before the due date of furnishing the return of income, in the intimation under Section 143(1), the CPC had arbitrarily stated under the particulars that the appellant had not opted for Section 115BAB. However, the processing of the return was done as per the returned income allowing the concessional benefit of 15%. In the AY 2023-24, the benefit of concessional rate of tax was denied and tax was computed at the rate of 30% in the intimation issued under Section 143(1). The appellant challenged the same before the Ld. JCIT(A) which dismissed the appeal by summarily observing that since the benefit was denied in the AY 2022-23 it was rightly denied in AY 2023-24.
The Hon’ble ITAT observed that since the tax amount was computed by considering the lower rate of tax of 15% in the previous AY, the Assessee Company will be entitled to the benefit under Section 115BAB for the AY 2023-24 as all other requirements of the Section were fulfilled.
The copy of the order is as under:
