Q. Filing of Form 10-ID in second year of Incorporation

Question

Form 10-ID was not filed before first return of income of the company as commencement of production was not started in first year. Also in first year there was no income only loss return was filed. Commencement of Production started in second year and Form 10-ID was filed before filing second year ITR. It was properly mentioned in ITR as well as TAR. But while processing CPC is not considering 115BAB. 115BAB is linked with commencement of production as it’s one of the eligible criteria to be eligible for 115BAB. How can we should proceed ahead with this CPC demand order?

Answer 1

Technically CPC is correct. As per the section, the form was to be filed before the first return of the company was to be filed. You may apply for confirmation to the commissioner.