TaxTMI 
TaxTMI 
2024 (10) TMI 530
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....e Act dt. 08.02.2021 for AY 2016- 17. 2) The Ld. CIT(A) grossly erred on facts as well as in law in confirming that MAT credit u/s 115JAA of the Act shall not be allowed to the appellant since the same was not carried forward in the income tax return for AY 2016-17 failing to appreciate that the said MAT credit was duly generated and accepted in the income tax return for AY 2010-11 to AY 2015-16. 3) The Ld. CIT(A) grossly erred on facts as well as in law in confirming that MAT credit u/s 115JAA of the Act shall not be allowed to the appellant since the same was not carried forward in the income tax return for AY 2016-17 failing to appreciate that a statutory claim of the assessee cannot be denied just on the ground that the assessee inadvertently forgot to mention the same in income tax return." 3. In this case, the AO did not set off the tax liability of Rs. 7,33,534/- computed under the normal provisions with the MAT credit (brought forward) available with the assessee and also did not allow the carry forward of the balance MAT credit u/s 115JAA of the Act aggregating to Rs. 11,38,46,270/- in the order u/s 250 r.w.s 143(3) of the Act, dated 26.07.2022 for A.Y....
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....04.02.2021 The AO issued a notice u/s 154 of the Act proposing re-computation of income at Rs. 43,29,99,780/- as against Rs. 31,50,30,377/- as computed in the assessment order u/s 143(3). 137-138 05.02.2021 The assessee filed a letter and agreed with the computational mistake mentioned in the notice u/s 154. Further, the assessee also stated that there was a MAT credit under Section 115JAA amounting to Rs. 11,45,79,804/- carried forward by the assessee in the ITR filed for the AY 2015-16. However, this credit was not allowed and adjusted against the tax liability arising from the additions made in the assessment order u/s 143(3) dated 28.12.2018. The assessee requested the AO to adjust the above MAT credit of Rs. 11,45,79,804/- with the outstanding tax demand of Rs. 14,98,52,564/- for the AY 2016-17. 139-140 MAT Credit schedule of ITR for the AY 2015-16 at page no.141 08.02.2021 A rectification order was passed u/s 154 r.w.s. 143(3) of the Act wherein the Id. AO rectified the mistakes apparent in the assessment order and the computation sheet annexed thereto The ld. AO, while computing the Tax demand u/s 156 r.w.s. 154, allowed the MAT credit of Rs.....
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..... CIT v. Bharat Aluminium Co. Ltd. [2011] 242 CTR 366 (Delhi HC) 3. Commissioner of Income Tax, Tamil Nadu vs M/s. Ambattur Clothing Limited, Tax Case (Appeal) No.1468 of 2007 (Madras HC) 4. Fiserv India Private Limited Vs ACIT; ITA No. 6583/Del/2019 (Delhi Trib.) When the assessee is legally entitled to claim any benefit under any statutory provision such benefit cannot be merely denied because of the reason that it was not claimed filing the income tax return. Further the limitation imposed by the Hon'ble Supreme Court's decision in the case of Goetze (India) Ltd. vs. CIT (2006) 284 ITR 323 (SC) only to the "assessing authority" and not to the appellate authority. 5. Goetze (India) Ltd. vs. CIT (2006) 284 ITR 323 (SC) 6. Wipro Finance Ltd. Vs. Commissioner of Income Tax [2022] 443 ITR 250(SC) 7. International Tractors Ltd. v. Deputy Commissioner of Income Tax [2021] 127 taxmann.com 822 (Delhi HC) 8. CIT, Chennai v. Abhinitha Foundation (P). Ltd., [2017] 83 taxmann.com 100 (Madras HC) 9. CIT, Jalandhar-I v. Ramco International [2011] 332 ITR 306 (Punjab & Haryana HC) 10. Principal Commissioner....
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....Credit allowed by the AO in the order u/s 154/143(3) of the Act dated 08.02.2011 and therefore, in absence of same, the AO could not have denied the set off of the tax liability of Rs. 7,33,534/- computed under the normal provisions with the MAT credit (brought forward) available with the assessee and the allowance of carry forward of the balance MAT credit u/s 115JAA of the Act aggregating to Rs. 11,38,46,270/- in the order u/s 250/143(3) of the Act dated 26.07.2022. 5. The Ld. DR relied upon the orders of the authorities below. 6. We have heard both the parties and considered the material on record. As submitted above the only dispute in this appeal is that the AO did not set off the tax liability of Rs. 7,33,534/- computed under the normal provisions with the MAT credit (brought forward) available with the assessee and to allow the carry forward of the balance MAT credit u/s 115JAA of the Act aggregating to Rs. 11,38,46,270/- in the order u/s 250/143(3) of the Act dated 26.07.2022 and the rejection of the application u/s 154 dated 09.09.2022 of the assessee for granting the same by the AO by an order dated 10.11.2022. The allowance and mechanism of set off of tax credit in....
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...., while computing the amount of credit under this sub-section, such excess amount shall be ignored.] (3) The amount of tax credit determined under sub-section (2) shall be carried forward and set off in accordance with the provisions of sub-sections (4) and (5) but such carry forward shall not be allowed beyond the fifth assessment year immediately succeeding the assessment year in which tax credit becomes allowable under sub-section (1). (3A) The amount of tax credit determined under sub-section (2A) shall be carried forward and set off in accordance with the provisions of sub-sections (4) and (5) but such carry forward shall not be allowed beyond the 3 [fifteenth assessment year] immediately succeeding the assessment year in which tax credit becomes allowable under sub-section (1A).] (4) The tax credit shall be allowed set-off in a year when tax becomes payable on the total income computed in accordance with the provisions of this Act other than section 115JA 4 [or section 115JB, as the case may be]. (5) Set off in respect of brought forward tax credit shall be allowed for any assessment year to the extent of the difference between the tax on h....
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....he tax which would have been payable under the provisions of subsection 1 of section 115JA of the Act or section 115JB of the Act as the case may be for that assessment year. The above provisions and the other sub-sections of section 115JAA of the Act provides that MAT credit available to the assessee is eligible for set off as per the above provisions of section 115JAA of the Act and there is no condition/restriction in section 115JA of the Act that such MAT credit will not be allowable to the assessee if it had failed to carry forward the same in the return of income filed by the assessee in the particular assessment year in which such MAT credit is claimed. 6.2 In view of the above provisions of section 115JAA of the Act, it is held that the credit in respect of tax so paid u/s 115JB of the Act shall be allowed to the assessee in accordance with the provisions of section 115JAA of the Act, wherein, there is no condition/restriction that such MAT credit will not be allowable to the assessee if it had failed to carry forward the same in the return of income filed by the assessee in the particular assessment year in which such MAT credit is claimed. In this case, after giving ap....