Concessional Tax rate fails but 25 percent rate still applies

Rajasthan Pulses had opted for the 22% rate under Section 115BAA but failed to file Form 10-IC within the prescribed time. CPC therefore taxed the company at 30%. 

The assessee accepted that it could not claim Section 115BAA, but argued that its FY 2017-18 turnover was only ₹91.40 crore, below the ₹400 crore threshold for the 25% normal corporate tax rate. 

ITAT Delhi agreed, holding that once Section 115BAA was unavailable, the tax had to be computed under the normal provisions and, given the turnover, at 25% rather than 30%. The matter was accordingly allowed in favour of the assessee.