2020 (8) TMI 512

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....me. 2. Brief facts of the case are that the assessee had undisputedly MAT credit of Rs. 54, 21,075/- which the assessee did not claim in the assessment year under consideration. Therefore, when the assessee's return was processed and intimation given u/s. 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") it was not granted to the assessee. Therefore, the assessee moved an application u/s. 154 of the Act before the AO for rectification of the same which was denied on the reason that the Hon'ble Supreme Court in Goetz (India) ltd. Vs. CIT 284 ITR 323 has held that the AO cannot entertain a claim unless the assessee has put forward such claim by filing return u/s. 139(1) of the Act. Aggrieved, the assessee preferred an....

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....invoked the provisions of section 154 of the Income tax Act. The provisions of section 115 JAA is as under:" 4. Thereafter, our attention to para 12 of the order was drawn wherein the Tribunal held as under: "Furthermore, there is no provision that the assessing officers should determine the tax credit, which shall be carried forward and set off. It is an inbuilt mechanism of the law of the credit and set off. Therefore, on application of a particular formula, if the tax payable under the normal computation is higher than the minimum alternate tax payable by the assessee, and if the assessee has MAT credit available, same shall be granted as a credit to the assessee against the tax liability. Therefore, we do not find that there is any ....

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....stpones the right of the assessee to claim set off to the determination of the total income by the A.O. in the first assessment year. Entitlement/right to claim set off is different from the quantum/quantification of that right. Entitlement of MAT credit is not dependant upon any action taken by the Department. However, quantum of tax credit will depend upon the assessment framed by the AO. Thus, the right to set off arises as a result of the payment of tax under Section 115JA(1) although quantification of that right depends upon the ultimate determination of total income for the first assessment year. Further, an assessee has a right to take into account the set off even while estimating its liability to pay advance tax on the "current inc....