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Judgment
ORDER
PER KRINWANT SAHAY A.M.
Appeal in this case has been filed by the assessee vide order dated 15.12.2025 passed by the ADDL/JCIT(A) Madurai for the A.Y. 2023-24. Grounds of appeal are as under :-
1.On the facts and circumstances of the case, and in law, the Ld.CIT(A) is bad in law and liable to be set aside.
2.CIT(A) erred in not adjudicating on the ground that the adjustments to be carried out under section 143(1) must be confined to its limited scope.
3.On the facts and circumstances of the case, and in law, the Ld.CIT(A) erred in upholding the denial of option availed by the Appellant of beneficial rate of tax of 22 per cent under section 115BAA.
4.Without prejudice to the above, on the facts and circumstances of the case, and in law, the Ld. CIT(A) erred in upholding the application of tax rate at 30 per centas against the tax rate at 25 per cent in view of Paragraph E of Part I of The First Schedule of Finance Act, 2023,
5.On the facts and circumstances of the case, and in law, the Ld. CIT(A) erred in upholding levy of interest u/s 234B and 234C of the Act.
The only issue involved in this case is denial of beneficial tax rate of 22% u/s.115BAA of the Act to the assessee because of late filing of the return and there to sustainance of the action of CPC by the Ld. CIT(A).
During proceedings before us the Ld. Counsel for the assessee submitted before the Bench that the assessee filed its return of income for A.Y. 2023-24 on 23.12.2023 alongwith tax audit report. The assessee had opted for concessional tax regimes under sections 115BAA or 115BAB of the Income-tax Act, 1961, with tax rates of 22% and 15% respectively (+ surcharge). The CPC rejected the claim of the assessee because the return was filed belatedly.
Against the order of the CPC the assessee filed an appeal before Ld. CIT(A) on this issues but the Ld. CIT(A) also dismissed the appeal of the assessee on the ground that the assesseee’s claim u/s. 115BAA of the Act cannot be accepted after original due date. The Ld. CIT(A) has also given his findings that due date for filing of the ITR was October 31 of 2023 but the assessee filed its return of income on 23.12.2023, therefore, according to Ld. CIT(A) the claim of the assessee cannot be accepted for concessional tax rate u/s.115BAA of the Act after the lapse of original due date for filing of the income tax return for A.Y. 2023-24. Ld. Counsel requested the Bench that the matter may be remanded back to the AO to consider the request of the assessee.
Per contra the Ld. DR relied on the order of the ld. CIT(A).
We have considered the findings given by the Ld. CIT(A) in the appellate order and we have also considered the arguments made by the Ld. Counsel for the assessee. We are of this considered view that the natural justice demands that the assessee’s request for his claim of tax u/s.115BAA of the Act should be reconsidered. Accordingly, we remand it back to the file of the AO for passing a denovo order after giving a reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.