AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 102
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....under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs: "a. A Writ of Certiorari or any other Writ, order or direction in the nature of Certiorari quashing Form 3 determining amount payable of Rs. 43,66,801/- under the Direct Tax Vivad se Vishwas (DTVSV) Scheme on or before 30.04.2021 and the consequent order dated 28.10.2021 rejecting the application to rectify Form 3 issued in response to the application made by the petitioner under Scheme; b. Instructing respondent to accept Form No. 1 and 2 under the scheme on 30.01.2021 as is filed by the petitioner and allow opted option of not to pay the tax and allow reduction of MAT credit and consequent refund." 3. Brief facts of the case are that ....
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....red appeal before the CIT (A) and also deposited Rs. 6,46,100/- being 20% of the penalty. 9. Thereafter, the Direct Tax Vivad Se Vishwas Scheme was introduced by the respondent and the petitioner decided to settle its pending appeals by taking benefit of the same and filed Form No. 1 and 2 under the Scheme on 30.01.2021. In Part A of the said Form 1, the petitioner opted not to pay the tax and filled necessary details about the reduction of Rs. 43,66,801/- in the MAT Credit in the Schedule D of the said Form 1 and claimed refund of Rs. 40,34,078/- on account of pre-payment of taxes. 10. The respondent, by issuing Form No. 3 dated 17.04.2021 determined tax payable before 30.04.2021 amounting to Rs. 4,06,211/- under the Scheme with followin....
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....13. Learned advocate Mr. Hardik Vora for the petitioner submitted that on perusal of the remarks given in Form No. 3, the respondent has not taken into consideration the effect of the order dated 29.01.2021 passed under section 154 of the Act by not reducing the MAT Credit of Rs. 35,11,241/- though it was submitted that the AO has reported that reduced MAT Credit has been allowed to be carried forward. However, no such effect is given in the calculation of the tax payable under the Scheme. 14. It was submitted that the petitioner has rightly stated that the petitioner is not liable to pay any tax under the Scheme after taking into consideration the MAT Credit and on calculation of the amount payable being paid on 06.04.2016 of Rs. 23,18,59....
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....the reduced tax credit or loss or depreciation. FAQ and answer thereto reads as under: "FAQ 53 reads as under: Question No. 53 If loss is not allowed to be adjusted while calculating disputed tax, will that loss be allowed to be carried forward? Answer: As per the amendment proposed in Vivad se Vishwas, in a case where the dispute in relation to an assessment year relates to reduction of Minimum Alternate Tax (MAT) credit or reduction of loss or depreciation, the appellant shall have an option either to (i) include the amount of tax related to such MAT creditor loss or depreciation in the amount of disputed tax and carry forward the MAT credit or loss or deprecation or (ii) to carry forward the reduced tax credit or loss or depre....
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....itioner has not carried forward any MAT Credit at the time of filing of return. It was submitted that as the petitioner has paid advance tax of Rs. 85 lakhs and claimed the reduced MAT Credit to Rs. 17,800/-, the petitioner is not entitled to the benefit of Rule 10 of the Rules. 21. Having heard learned advocate for the respective parties and considering the facts of the case, it would be germane to refer to Rule 10 of the Rules which is resorted to by the petitioner for utilizing the MAT Credit by reducing the same and not paying tax under the Scheme: "10. (1) Where the dispute in relation to an assessment year relates to reduction m Minimum Alternate Tax (MAT) credit to be carried forward, the declarant shall have an option to (i) in....
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....ted to issues covered in favour of declarant. Explanation.-For the purpose of this rule MAT credit means tax "credit as per the provisions of section VISUAA or or 115JD of of the Income-tax Act. Explanation:- For the purpose of this rule MAT credit means tax credit was per the provisions of section 115JAA or 115JD of the Income tax Act. In view of the above facts, the Rectification application for correction in form 3 of the assessee is not found correct. Therefore, the rectification application of assessee is rejected and disposed off." 22. On perusal of the above Rule, it is clear that the petitioner is entitled to carry forward the reduced MAT Credit for payment of the taxes under the Scheme as the petitioner has the option which ....