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2020 (9) TMI 71 - AT - Income TaxRectification u/s 154 - excess MAT credit has been given to the assessee u/s. 115JAA - HELD THAT - In the present case, the CIT(A) observed that the AO mentioned that there is no MAT credit for A.Ys. 2006-07 and 2007-08 and further, he opined that the assessee could not demonstrate what is the actual MAT credit available for the aforesaid two assessment years. Assessee even before CIT(A) pleaded that there may be direction to the AO to give appeal effect to order of Tribunal and CIT(A). Admittedly, this was not considered by the CIT(A) and there was no reference in the order passed u/s. 154 of the Act regarding availability of MAT credit for A.Ys. 2006-07 and 2007-08. Therefore, in our opinion unless the appeal effect is given, then only whether the MAT credit is available or not will be known, if the AO finds MAT credit on such examination, which can be carried forward to give credit in the year under consideration - we find force in the arguments of ld. AR and taking into consideration the discussion made above we remand the matter to the file of AO for its fresh consideration with the direction to compute the MAT credit available to the assessee in earlier years by giving effect to the orders of ITAT and CIT(A). Thus, the only ground raised by the assessee is allowed for statistical purpose.
Issues:
Whether the CIT(A) was justified in confirming the order passed by the AO u/s. 154 of the Act in the case. Analysis: The appeal was filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2011-12, where the AO's order under section 154 of the Act was confirmed. The primary issue revolved around the correctness of this confirmation by the CIT(A). The Assessing Officer had initially passed an order determining the total income of the assessee, initiating 154 proceedings due to alleged excess MAT credit given to the assessee under section 115JAA of the Act. The assessee contended that the MAT credit claimed was reduced and sought a direction for the AO to compute the MAT credit of earlier years as per orders from the Tribunal and CIT(A). During the proceedings, the ld. DR vehemently opposed the submissions of the ld. AR, arguing that there was no mistake in the AO's order under section 154, and any further application should be made directly to the AO without requiring directions from the Tribunal. The issue of MAT credit was crucial, as the CIT(A) noted discrepancies in the available MAT credit for certain assessment years and the failure of the assessee to demonstrate the actual credit for those years. The CIT(A) did not consider the plea for direction to the AO to give appeal effect to the orders of the Tribunal and CIT(A), which led to uncertainty regarding the availability of MAT credit for specific years. In light of the arguments presented and the circumstances of the case, the Tribunal found merit in the contentions of the ld. AR. Consequently, the Tribunal remanded the matter to the AO for fresh consideration, directing the computation of the MAT credit available to the assessee in earlier years in accordance with the orders of the ITAT and CIT(A). The Tribunal allowed the only ground raised by the assessee for statistical purposes, ultimately allowing the appeal of the assessee in that regard. Therefore, the Tribunal's decision emphasized the importance of properly computing and giving effect to MAT credits from earlier years, ensuring a fair assessment and utilization of such credits in subsequent years. The remand to the AO with specific directions aimed to resolve the uncertainties surrounding the MAT credit issue, ultimately leading to the allowance of the appeal for statistical purposes.
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