2026 (5) TMI 1770

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....rocessed u/s 143(1) of the Act. Through this processing the Ld. AO-CPC disallowed the option claimed by the assessee u/s 115BAA of the Act and thereafter made an addition of Rs. 36,67,21,158/- u/s 115JB of the Act. 1.2 The assessee approached the Ld. Addl./JCIT (Appeals) where he could succeed on the basis of the following findings: - "5.4 Ground No.4: That on facts and in law the AO has erred in invoking provisions of Chapter XII-B and thereby determining tax payable on "Book Profits" u/s 115JB of the Act. These grounds of the appellant are against calculating Book profit as per provisions of section 115JB which has been computed at a sum of Rs. 36,67,21,158/- determining total tax payable at Rs. 6,91,94,590/-....

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....s relevant is the amendment to Section 115JB by the Taxation Laws (Amendment) Ordinance, 2019, which states that MAT provisions do not apply to a domestic company opting for Section 115BAA of the Income Tax Act, 1961. The Central Board of Direct Taxes (CBDT) further clarified this in Circular No. 29/2019, stating that the MAT credit would not be available after exercising the option under Section 115BAA. 5.4.4 This effectively means that a company opting for Section 115BAA cannot utilize accumulated MAT credit (governed by Section 115JAA) against their tax liability under the new regime. Companies should consider utilizing their MAT credit before opting for Section 115BAA, as the choice is irreversible. 5.4.5 The subsectio....

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....n law, the Ld. Addl./JCIT(A) has erred in deleting the addition of Rs. 36,67,21,158/- u/s 115JB of the Act. 2. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in holding that the assessee is eligible for concessional taxation u/s 115BAA. 3. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in ignoring the fact that the assessee has filed Form 101C after the due date u's 139(1) of the Act. 4. On the facts and circumstances of the case and in law, the Ld. Addl./JCIT(A) has erred in not appreciating the fact that in AY 2023-24, the assessee has accepted the adjustment made by CPC on account of ineligibility u/s 115BAA of the Act. ....