Revenue appeals allowed for statistical purposes, remanded to A.O. for fresh adjudication

The appeals filed by the Revenue were allowed for statistical purposes. The matters were remanded to the Assessing Officer (A.O.) for fresh adjudication in accordance with the law, following the Supreme Court's guidelines in a relevant case.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Entitlement and quantification of Minimum Alternate Tax (MAT) credit under section 115JAA.
3. Rectification of the order passed by the Assessing Officer (A.O.) as a mistake apparent from the record.

Detailed Analysis:

1. Condonation of Delay:
The Revenue's appeal was time-barred by eight days. The Department filed a condonation petition explaining the delay, citing reasons such as the file being considered by the CIT, authorization by the CIT, and the absence of the dealing clerk. The Departmental Representative prayed for condonation of the delay, which was not objected to by the assessee's counsel. Consequently, the delay was condoned, and the appeal was admitted.

2. Entitlement and Quantification of MAT Credit:
The assessee-company filed its return of income showing a total income of Rs. 79,19,67,310/-. The assessment order allowed brought forward MAT credit under section 115JAA for the assessment year 1999-2000. However, a subsequent order under section 147/143(1) for the same year resulted in the MAT credit becoming nil. The A.O. passed an order under section 154 withdrawing the MAT credit.

The CIT(A) directed the A.O. to allow the admissible MAT credit following decisions from the ITAT Chennai and Chandigarh Benches. The assessee's counsel cited the Supreme Court decision in CIT vs. Sage Metals Limited, which clarified that the entitlement to MAT credit is not dependent on the Department's actions but on the payment of tax under section 115JA(1). The quantification of this right depends on the ultimate determination of total income for the first assessment year.

The Supreme Court also noted that any tax paid in advance or pre-assessed tax could be considered when computing tax payable, subject to the risk of interest under section 234B if the MAT credit claimed was not lawfully available. The matter was restored to the A.O. for fresh adjudication in accordance with the Supreme Court's decision.

3. Rectification of the Order as a Mistake Apparent from the Record:
The Revenue's appeal against the CIT(A)'s order, which held that the rectification order passed by the A.O. was not a mistake apparent from the record, was considered. The issue was identical to the one in ITA No. 2612/KOL/2005. The Tribunal decided to restore the matter to the A.O. for fresh adjudication in accordance with the law, providing a reasonable opportunity for the assessee to be heard.

Conclusion:
Both appeals filed by the Revenue were allowed for statistical purposes. The matters were restored to the file of the A.O. for fresh adjudication in accordance with the law, following the Supreme Court's guidelines in the Sage Metals Limited case. The order was pronounced in the open court on 01.09.2015.

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