Income Tax Appellate Tribunal - Delhi
Income Tax Officer, Ward-27(1), New ... vs Western Developers Private Limited, ... on 6 May, 2026
ITA No. 648/Del/2026
WESTERN DEVELOPERS PRIVATE LIMITED
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH "A" NEW DELHI
BEFORE SHRI YOGESH KUMAR US, JUDICIAL MEMBER
AND
SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER
आ.अ.सं(IT/.I.T.A No.648/Del/2026
निर्धारणवर्ा/Assessment Year: 2024
INCOME TAX OFFICER, Ward Vs WESTERN DEVELOPERS PRIVATE LIMITED,
27(1), Room No.199, C.R. 9, Kasturba Gandhi Marg,
Building, Income Tax New Delhi 110001.
Office, PAN No.AAACW0841L
New Delhi 110002.
अपीलधर्थी Appellant प्रत्यर्थी/Respondent
Assessee by Shri Sandeep Yadav, Adv & Shri Tarandeep Singh, CA
Revenue by Shri Jitender Singh, CIT DR
सुिवधईकीतधरीख/ Date of hearing: 23.04.2026
उद्घोर्णधकीतधरीख/Pronouncement on 06.05.2026
आदेश /O R D E R
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
1. The present appeal arises from order dated 27.11.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as "the Act"), by Ld. Addl./JCIT(Appeals)-5, Mumbai.
1.1 In this case, the return of income filed by the assessee was processed u/s 143(1) of the Act. Through this processing the Ld. AO-CPC disallowed the option claimed by the assessee u/s 115BAA of the Act and thereafter made an addition of Rs.36,67,21,158/- u/s 115JB of the Act. 1 ITA No. 648/Del/2026
WESTERN DEVELOPERS PRIVATE LIMITED 1.2 The assessee approached the Ld. Addl./JCIT (Appeals) where he could succeed on the basis of the following findings: -
"5.4 Ground No.4:
That on facts and in law the AO has erred in invoking provisions of Chapter XII-B and thereby determining tax payable on "Book Profits"
u/s 115JB of the Act.
These grounds of the appellant are against calculating Book profit as per provisions of section 115JB which has been computed at a sum of Rs. 36,67,21,158/- determining total tax payable at Rs.6,91,94,590/-. The appellant vide letter dated 21.11.2025 submitted as under:
In continuation of my earlier submission dated 17.10.2025 where in it was submitted to your kind office/goodself that CPC vide order/intimation u/s 143(1) dated 22/01/2025 for AY 2024-25, has disallowed the benefits claimed for taxation u/s 115BBA of the Income Tax Act, 1961, whereas the assessee is an eligible assessee for the same. Further, the CPC, in the intimation u/s 143(1) dated 22/01/2025, has computed the tax u/s 115JB raising demand of Rs.6,40,73,523/- whereas the provision of section 115JB of the Act are not applicable to the assessee. It is also noticed from the said impugned order dated 22/01/2025, "Book profit of Rs.36,67,21,158/- was computed by CPC which is u/s 115JB completely wrong as the assessee has fulfilled all the conditions of taxation u/s 115BBA of the Act. The Hon'ble Appellate Authority is also pay your kind attention that after filing of Form 10IC on 02/03/2021 on e-filing portal, the assessee was given the benefits of taxation u/s 115BBA of the Act and taxed the income @ 22% as per the Income Tax Act for AY 2020-21 to 2022-23.
5.4.2 Section 115BAA of the Income Tax Act, 1961 itself does not explicitly contain a clause about the lapsing of Minimum Alternate Tax (MAT) credit. Instead, the law achieves this result by making the entire Section 115JB (MAT provisions) inapplicable to companies that opt for Section 115BAA.
5.4.3 The legislative change that is relevant is the amendment to Section 115JB by the Taxation Laws (Amendment) Ordinance, 2019, which states that MAT provisions do not apply to a domestic company opting for Section 115BAA of the Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) further clarified this in Circular No. 29/2019, stating that the MAT credit would not be available after exercising the option under Section 1158AA.
5.4.4 This effectively means that a company opting for Section 115BAA cannot utilize accumulated MAT credit (governed by Section 115JAA) against their tax liability under the new regime. Companies should 2 ITA No. 648/Del/2026 WESTERN DEVELOPERS PRIVATE LIMITED consider utilizing their MAT credit before opting for Section 1158AA, as the choice is irreversible.
5.4.5 The subsection 5(A) of section 115JB of the Income Tax Act, 1961 is reproduced as under:
(5A) The provisions of this section shall not apply to,-
(i) any income accruing or arising to a company from life insurance business referred to in section 1158;
(ii) a person who has exercised the option referred to under section 115BAA or section 115BAB.
5.4.6 Upon a careful examination of the facts and applicable legal provisions, it is observed that the appellant has opted for taxation under section 115BAA of the Income-tax Act, 1961 In such a circumstance, the provisions of section 115JB cease to apply, by virtue of sub-section (5A) of section 115JB, which expressly excludes the applicability of Minimum Alternate Tax (MAT) where tax is computed under section 115BAA. 5.4.7 Accordingly, as the Ground Nos. 2 and 3 are adjudicated on the applicability of section 115BAA, it is held that section 115JB has no application in the present case. In view of the above legal position, the Assessing Officer is hereby directed to compute the tax liability of the appellant in accordance with the provisions of section 115BAA, without invoking the provisions of section 115JB."
1.3 The Revenue is aggrieved with the relief given by the First Appellate Authority and has approached the ITAT with the following grounds: -
"In the case of Mis Western Developers Private Limited, PAN- AAACW0841L AY-2024-25:
1. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in deleting the addition of Rs.36,67,21,158/- u/s 115JB of the Act.
2. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in holding that the assessee is eligible for concessional taxation u/s 115BAA.
3. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in ignoring the fact that the assessee has filed Form 101C after the due date u's 139(1) of the Act.
4. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in not appreciating the fact that in AY 2023-24, the assessee has accepted the adjustment made by CPC on account of ineligibility u/s 115BAA of the Act.3 ITA No. 648/Del/2026
WESTERN DEVELOPERS PRIVATE LIMITED
5. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in ignoring the fact that the assessee has filed fresh Form 101C for AY 2025-26.
6. The appellant craved leave to add, alter, delete and/or modify any of the grounds of appeal either before or at the time of hearing of this appeal."
2. Before us the Ld. DR pointed out that initially the Form 10-IC was filed on 02.03.2021 and thereafter a fresh Form 10-IC was filed for Ay 2025-26. It was the submission that since Form 10-IC was not filed within the due date u/s 139(1) of the Act, hence, the assessee was not entitled for any relief as had been granted by the Ld. Addl./JCIT(Appeals). 2.1 Per contra, the Ld. AR pointed out that the Form 10-IC filed on 02.03.2021 was duly taken into consideration for AY 2020-21, 2021-22 & 2022-23. For all these years the Ld. AO-CPC has accepted the taxability u/s 115BAA of the Act. It was argued that there are no grounds to render an option once exercised u/s 115BAA(1) as invalid or in violation of conditions stated in section 115BAA(2) of the Act.
3. We have carefully considered the rival submissions and have gone through the documents before us. It is seen that the Ld. Addl./JCIT(Appeals) (supra) has interpreted the law correctly and due to that reason, we do not deem it fit to interfere in the impugned finding. Furthermore, in the interest of consistency also the assessee deserves to succeede since for at least three previous years the processing has been done u/s 115BAA of the Act.
4. In the result, the Department's appeal is dismissed. 4 ITA No. 648/Del/2026
WESTERN DEVELOPERS PRIVATE LIMITED Order pronounced in the open court on 06.05.2026 Sd/- Sd/-
(YOGESH KUMAR US) (SANJAY AWASTHI)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 06.05.2026
*Kavita Arora, Sr. P.S.
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR: ITAT
ASSISTANT REGISTRAR
ITAT, NEW DELHI
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