MAT credit recomputation follows deletion of additions and is upheld as a consequential adjustment.

Deletion of the additions made in processing the return under section 143(1) required consequential recomputation of the assessee's brought-forward MAT credit claimed under section 115JAA. The challenge was confined to the adjustment of MAT credit in the order giving effect, and the Revenue did not dispute the deletion of the additions themselves. The direction to allow the correct MAT credit was therefore upheld as a consequential effect of the appellate relief.

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Issues: Whether the direction to recompute and allow the correct Minimum Alternate Tax credit in the order giving effect, after deletion of the additions, was liable to be interfered with.

Analysis: The return had been processed under section 143(1) of the Income-tax Act, 1961, and the assessee had claimed set-off of brought forward MAT credit under section 115JAA. The additions made while processing the return were deleted in appeal, and the direction to recompute the MAT credit followed as a consequential step in giving effect to that appellate relief. The revenue did not assail the deletion of the additions and challenged only the consequential MAT credit adjustment.

Conclusion: The direction to recompute and allow the correct MAT credit was upheld. The appeal was decided against the Revenue and in favour of the assessee.

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