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Judgment
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 p arties at length. Case file perused.
It tr anspires 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 asse ssment under the “new” scheme u/s 115BAB of the Act; vide the fo llow ing de tailed discussion:
“5 . Decision:
5.1The Appellant’s Gr ounds of Appeal, Statement ofThe Appel lant’s G rounds of Appeal, S tatement ofThe Appellant’s Gro unds of Appeal, Sta tement of Facts,Facts , Retur nReturn of Inc omeIncome for t hethe r eleva ntr elevantrelevant AYs 2024-25. 2023-24, the Form 10ID and the Orders u/s 143(1) of t he24, t he Form 10ID and the O rders u/s 143(1) of the24, the Form 10ID and t he O rders u/s 143(1) of the Act for t he AYsthe 2023-24 a nd 2024-25 have been per usedbeen p erused carefully. The sol es ol e issue in t hethe appeal isi s the d enialdenial of concessionalconcessio nal rat erater ate ofo f t axati on taxati ontax ati on u/s 11 5BAB 115BAB of the Act .Ac t. T heThe app ellantappellant has opted forf or thet he sames ame i nin the AY 2023-24. For m 10IDForm 10ID had bee n fil edbeen filed withi n the due date o f filing of fi ling returnre turn o fof Income f orfor the saidsai d A Y.AY. However,However , it is found thatt hat the tax ati ontaxati on opt edopted for u/s 115 BAB of the Ac tAct has been deni ed i n t he AY 2023bee n deni ed i n the AY 2023-24 vide Inti ma tion Or der u/s24 vide Intimation Order 143(1) o fof t hethe ActAc t dated 26.11.2023. ThereafterTher eafter i n Order u/s 154 of t he ActAc t dated 07.01.2025 also,al so, t hethe A ppellantA ppel lantAppellant has no t been given relief. Co nsequentially, ther efore, thehas not been given relief. Cons eque nti ally, t herefore, t hehas no t bee n give n relief. C onseque ntial ly, therefore, t he taxati on u/s 115 BAB of t hethe ActAc t has be enbeen de ni eddeni ed in AY 2024-25 also. T heThe Appellant has filed ana n A ppealAppeal a gai nsta gai ns tagai nst t he Order u/s 154 of the Act dated 0 7.01.20the Ord er u/s 154 of the Act dat ed 0 7.01.2025 pertai ning to AY 2023-24 also,also , whi chwhich is pending f orfor adj udication.adjudication. T heThe extractext ract of For mForm 10ID filed on 26.10.2023 i sis as bel ow:
5.2As per S ecti on 115BAB (2)(a) of the Act, one of the conditions for availing the t axation u/s 115BAB of t he Act is that the c ompany s hould have been set up and register ed on or aft er 01.10.2019 and has commenced manufacturi ng or producti on of an article or thi ng on or before 31.03.2023 (amended as 31.03.2024 by Fi nance Act, 2022 subseque ntly). In the i ns tant case, as per Form 10ID as above, t he Date on which t he compa ny was set up or regist ered is stat ed to be 21.07.2021, howev er the col umn of date of commenc ement of manufacturing / prod uctio n is st ated t o be “– “. Thus t he date of commenceme nt o f manufac turing / producti on is not menti oned in Form 10-ID. Thus it i s ascer tai ned that the taxati on u/s 115 BAB could ha ve possibly been deni ed due t o the above declaration i n Form 10ID itself. Ther efore, the dis allowance is held to be cor rect and t he Assessee’s Appeal is dismisse d.”
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 re presentative seeks to buttress the point that since the asse ssee’s very claim stands declined in the preceding assessment year as per C IT(A) above extracted discussion, the tribunal oug ht to follow jud icial consiste ncy to affirm the impugned disallowance of assessment u/s 115BAB herein as well.
I find no reaso n to express my agreement with the Revenue’s stand. It is made clear that the new regime of assessment u/s 115BAB come s into play in an instance wherein a company is se t up and registered on or after the first day of October 2019 subject to a further rider that it comme nces manufacturing or production of article or things on or before 31.03.2024. The asse ssee has filed it’s balance sheet and other relevant books of acco unts 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 co nsidered 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 o f the Act in very ter ms. Ordered accordingly.
This assessee’s appeal is allowed.