MAT computation and MAT credit: dividend non-payment is no ground for exclusion, while abated 153A assessments permit fresh MAT credit review.

Section 115JB applies on the statutory book-profit formula where tax under normal provisions is below the prescribed benchmark, and non-payment of dividend is not a statutory basis to exclude a company from MAT computation. The Tribunal noted that authorities relied on by the assessee did not govern the amended provision for the relevant years, so the book-profit adjustment was sustained. On MAT credit, an abated assessment under section 153A allows fresh determination, and the claim under section 115JAA can be examined afresh on the return and books. The Tribunal therefore accepted MAT credit in principle and directed recomputation of the consequential relief in accordance with law.

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Issues: (i) whether the assessee, being a company not paying dividend, could be excluded from MAT computation under section 115JB; (ii) whether MAT credit under section 115JAA was available in an abated assessment framed under section 153A.

Issue (i): whether the assessee, being a company not paying dividend, could be excluded from MAT computation under section 115JB.

Analysis: The governing provision applies where the tax payable under the normal provisions is less than the prescribed percentage of book profit, in which case the book profit is deemed to be the total income. The condition of dividend payment is not embedded in the statutory text. The Tribunal noted that the relied-upon authorities did not govern the amended form of section 115JB applicable to the relevant years, and that exclusion on the basis of non-payment of dividend would amount to reading into the provision a condition not enacted by the legislature.

Conclusion: The assessee was not entitled to exclusion from MAT computation, and the addition of book profit under section 115JB was upheld against the assessee.

Issue (ii): whether MAT credit under section 115JAA was available in an abated assessment framed under section 153A.

Analysis: In an abated assessment, the assessment stands for fresh determination, and a claim for consequential relief based on the return and books of account can be considered. The Tribunal accepted that the bar relied upon by the Revenue was inapplicable to an abated proceeding and held that the computation of MAT credit had to be examined afresh in accordance with law.

Conclusion: The assessee was entitled to MAT credit in principle, and the Assessing Officer was directed to recompute the consequential relief afresh.

Final Conclusion: The appeals succeeded only in part, with MAT applicability sustained but the claim for MAT credit accepted for fresh computation in accordance with law.

Ratio Decidendi: MAT under section 115JB cannot be excluded merely because a company does not pay dividend, and in an abated section 153A assessment a claim for MAT credit may be examined and computed afresh.

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