2019 (7) TMI 1933 - AT - Income Tax

Computation of book profit and MAT - only grievance of the Revenue was against the direction given by the CIT(A) to the AO to compute the MAT tax payable by the assessee, after verifying the claim of the assessee - HELD THAT - Considering the pleadings made by the Revenue, we set aside the order of the CIT(A) giving aforestated direction and at the same time, we also direct the CIT(A) to adjudicate the issue himself after calling for a Remand Report on the facts of the issue from the A.O.

Summary

Issues:
1. Appeal against CIT(A) order relating to assessment year 2012-13.
2. Grievance regarding direction to compute MAT tax payable by the assessee.
3. Dispute over the computation of demand by the AO without issuing a tax computation sheet.
4. Interpretation of section 251(1) of the Income Tax Act regarding remanding matters.

Analysis:
1. The appeal was filed by the Revenue against the CIT(A) order concerning the assessment year 2012-13. The main issue raised by the Revenue was the direction given by the CIT(A) to the Assessing Officer (AO) to compute the Minimum Alternate Tax (MAT) payable by the assessee after verifying the claim made. The Revenue contended that the CIT(A) could not remand any matter to the AO as per section 251(1) of the Income Tax Act.

2. The facts of the case revealed that the AO had raised a demand against the assessee without issuing a tax computation sheet, leading to a discrepancy in the computation of the demand. The CIT(A) directed the AO to verify the claim of the assessee and compute the MAT accordingly, addressing the concerns raised by the assessee regarding the computation of demand without proper explanation. The CIT(A) instructed the AO to provide any credit due to the assessee as per law.

3. During the proceedings, the Revenue argued that the direction given by the CIT(A) was not in accordance with the law, citing section 251(1) of the Act. On the other hand, the counsel for the assessee supported the CIT(A)'s order. The Tribunal considered the contentions of both parties and concluded that the grievance of the Revenue against the direction to compute tax under MAT was valid. The Tribunal set aside the CIT(A)'s direction and instructed the CIT(A) to adjudicate the issue after obtaining a Remand Report from the AO.

4. The Tribunal's decision highlighted the importance of proper computation and verification of tax liabilities, emphasizing the need for adherence to legal provisions while addressing disputes related to tax assessments. By directing the CIT(A) to independently adjudicate the issue based on factual findings, the Tribunal ensured a fair and thorough examination of the matter in accordance with the law.

This detailed analysis of the judgment provides a comprehensive understanding of the issues raised, the arguments presented by both parties, and the Tribunal's decision in addressing the dispute related to the computation of MAT tax payable by the assessee.