Khushi Doshi
Published on: March 2, 2022 at 10:39 IST
After filing a rectification application under Section 154 of the Income Tax Act, 196, The Delhi High Court Bench comprised of Justices Manmohan and Navin Chawla directed the Central Processing Center to determine and process the refund due to LG electronics in accordance with the law.
LG chose to be taxed under Section 115BAA of the Act, attracting a 22 percent tax rate, but the revenue authorities applied a 25 percent tax rate under Section 115BA of the Act. LG filed a Writ Petition in the High Court, challenging the intimation issued under Section 143(1) of the Act and requesting that the revenue authorities dispose of its rectification application under Section 154 of the Act seeking rectification of the impugned intimation.
Sections 115BA and 115BAA give an assessee, who is a domestic company, the option of being governed by either of the provisions, attracting a tax rate of 25% or 22%, respectively, if certain conditions are met. Section 154 empowers the specified income tax authority to amend any order issued by it under the Act or any intimation issued under Section 143(1) of the Act in order to correct any mistake visible on the record.
Though the rectification of intimation under Section 143(1) was completed, the accounting of rectification order under Section 154 could not be completed at the Central Processing Center, according to the revenue authorities’ counsel (CPC).
The Court ordered the CPC to calculate and process LG’s refund in accordance with the Law.
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