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2021 (4) TMI 444 - AT - Income TaxMinimum Alternate Tax (MAT) credit under section 115JAA for company stands merged with the Appellant - HELD THAT - the issue before us is mutatis mutandis identical to the issue decided by a Co-ordinate bench of this Tribunal in Ambuja Cements Ltd 2019 (9) TMI 726 - ITAT MUMBAI we hold that the Assessing Officer ought to have allowed the claim of assessee in carrying forward MAT credit of amalgamating company. Consequently, we set aside the impugned order of the Assessing Officer and direct him to allow assessee s claim. Thus, ground no.1, is allowed. Interest u/s 234D after excluding the interest paid on refund issued u/s 143(1) - assessee preferred an alternative plea that the computation of interest under section 234D of the Act is incurred and, therefore, the interest under section 244A of the Act should be excluded - HELD THAT - After considering the decision in case of sister concern of the assessee in Tata Communication Ltd. 2015 (7) TMI 529 - ITAT MUMBAI and Tata Power Ltd. 2013 (3) TMI 662 - ITAT MUMBAI , the issue was restored to the file of the Assessing Officer with the direction that interest under section 244A needs to be excluded while computing interest under section 234D. Facts of this issue being similar in the current year as well, consequently, we deem it fit to set aside the impugned order of the learned Commissioner (Appeals) and restore the issue to the file of the Assessing Officer to follow the above direction. It is also pertinent to mention here that the assessee, by way of Exhibit 9, has also filed calculation of interest under section 244A.Assessing Officer is further directed to verify the above calculation and while deciding the issue proper opportunity of hearing may be provided to the assessee. Accordingly, grounds no.2 and 3, raised are allowed for statistical purposes in terms indicated above.
Issues involved:
1. Non-granting of MAT credit under section 115JAA of the Act. 2. Recomputation of interest under sections 234D and 244A of the Act. Issue 1: Non-granting of MAT credit under section 115JAA of the Act: The appeal was filed by the Revenue against the order of the Commissioner (Appeals) challenging the non-adjudication of the MAT credit issue. The assessee, a telecommunication services company, filed a revised return claiming MAT credit under section 115JAA of the Act. The Assessing Officer initially mentioned granting MAT credit pending verification but rectified the assessment without providing the relief. The Commissioner (Appeals) did not provide reasons for not adjudicating the issue, leading to the appeal before the Tribunal. The Tribunal referred to a previous decision in Ambuja Cements Ltd. and held that the MAT credit of the amalgamating company must be allowed to the assessee. Consequently, the impugned order was set aside, and the Assessing Officer was directed to grant the MAT credit. Issue 2: Recomputation of interest under sections 234D and 244A of the Act: The assessee raised grounds regarding the recomputation of interest under sections 234D and 244A of the Act. The Tribunal noted a previous decision in the assessee's case for the assessment year 2001-02 where the claim was rejected. However, the Tribunal directed the Assessing Officer to exclude interest under section 244A while computing interest under section 234D based on a decision in a sister concern's case. The Tribunal set aside the Commissioner (Appeals) order and restored the issue to the Assessing Officer for compliance with the direction. The Tribunal also highlighted the calculation of interest under section 244A provided by the assessee for reference and verification by the Assessing Officer. In conclusion, the Tribunal allowed the appeal partly, directing the Assessing Officer to grant the MAT credit and recompute interest under sections 234D and 244A in accordance with the provided directions and calculations.
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