9911796707
TMI Blog2019 (8) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts & circumstances of the case and law and further that the units, in respect of which such MAT credit is available, are no longer a part of the assessee company? 2. The appellant craves leave to amend, alter, delete or add grounds which may be necessary. 3. The brief facts of the case are that TCS E-serve International Ltd. is engaged in the business of providing Information Technology enabled services (IT/ITES), Business process Outsourcing Services ('BPO') for its customers in the banking financial services and insurance space. The company's operations include delivery of core processing services and support services and support services for both data and voice services. The assessee had filed its return of income for AY 2014-15 on 26/11/2014, declaring total income of Rs. 78,49,97,170/- under normal provision of the IT.Act, 1961 and book profit of Rs. 78,26,00,243/- u/s 115JB of the Act, in the return of income, the assessee had claimed set off of Minimum Alternate Tax (MAT) credit of Rs. 10,27,83,613/- (out of the accumulated balance of MAT credit available for set off of Rs. 55,94,84,857/- under section115JAA of the Act.). In the present case, the Board of Directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee company under the I.T.Act, 1961 by relying on a portion of the Hon'ble High Court order sanctioning the scheme of demerger and without appreciating the totality of the facts and circumstances of the case and law and further that the units, in respect of such MAT credit available had no longer part of the assessee company. 7. The Ld. AR for the assessee, on the other hand, strongly supporting order of the Ld.CIT(A) submitted that as per, the order of the Hon'ble Bombay High Court, all taxes including income tax, if any paid or payable by assessee shall be on account of TCS e-serve International Ltd. before the appointed date and after, the date of appointment, it will be to the account TCS Ltd. The Ld.CIT(A), after considering the observations of the Hon'ble High court, which is being in the nature of law of the land, has rightly directed the AO to allow set off of carry forward of MAT credit to the assessee. The Ld.AR, further submitted that even, otherwise as per, the scheme of taxation MAT credit is available to a person, who had paid MAT tax in the earlier financial years. In this case, the assessee has paid MAT tax, in respect of earlier years and whatever, credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of SEZ units, the credit for such MAT credit needs to be allowed to the assessee, but not to the demerged SEZ units. We further noted that TCS Ltd has not claimed credit for MAT credit in their return of income, which is evident from the fact that the AO of TCS Ltd in their assessment has categorically stated that MAT credit of TCS e-serve International Ltd will be available to the TCS e-serve International Ltd. Only. We, further stated that MAT credit should go into entity, but not with resulting company. Therefore, we are of the considered view that the Ld.CIT(A) has rightly considered the issue in light of provision of Act and also, the scheme of demerger approved by the Hon'ble Bombay High Court, while directing the AO to allow carry forward and set off of MAT credit. 9. Coming to the case laws relied upon by the assessee. The assessee has relied upon by the decision of ITAT, Mumbai 'B' Bench, in the case of DCIT vs. Brandon & Co. (P) Ltd. in ITA No. 1972/Mum/2017,where the Tribunal after considering relevant provisions of Act, held that MAT credit is available to the entity, which is paid excess tax under MAT over the tax payable under the normal provision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operation of law' and thereby CIT(A) has rightly allowed the MAT credit to the respondent; 4. erred in not appreciating that the learned AO of Tata Consultancy Services Limited (TCS') (transferee company) has held that the MAT credit for the subject AY should be available only to TCS E-serve (i.e. respondent) and thereby CIT(A) has rightly allowed the MAT credit to the respondent; 5. erred in not giving direction that the balance un-utilized MAT credit of Rs. 45,67,01,244/- (ie, Rs. 55,94,84,857/- (total accumulated opening balance of MAT credit) Rs. 10,27,83,613 [allowed by CIT(A) to set off against current year's tax liability], should be allowed to be carry forward to the subsequent assessment year and can be set-off against the tax liability of the subsequent years; 6. Without prejudice to above, the carry forward and set-off of MAT credit in respect SEZ units allowed to TCS in case the same is not allowed in the hands of Respondent. 12. The assessee has filed cross objection by taking six grounds of cross objections in its memorandum of cross objections filed against order of the Ld.CIT(A), the ground No. 1 to 4 of cross objection are supporting the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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