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TMI Blog2024 (10) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... rm 3 it is apparent that the respondent though has taken into consideration that the AO has permitted the carry forward of the MAT Credit but while calculating the amount payable by the petitioner in Form 3 with regard to tax arrears and amount payable under DTVSV on or before 30.04.2021, the respondent has not taken into consideration order dated 29.01.2021 passed by the AO for permitting petitioner to carry forward the MAT Credit being the difference between tax payable under the normal provision of tax payable u/s115JB and therefore the petitioner was entitled to reduce the MAT Credit for not paying any amount otherwise payable as calculated in Form No. 3. We are of the opinion that impugned Form No. 3 and the rectification order are required to be quashed and set aside by remanding the matter back to the respondent to re-calculate the entitlement of the refund in accordance with the Scheme and the Rules thereunder by applying Rule 10 of the Rules after taking into consideration order dated 29.01.2021 passed by the AO u/s 154 of the Act with regard to order dated 01.09.2016 giving effect to the CIT (A). - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al against the addition of Rs. 1,07,67,270/-. 8. The Assessing Officer, by order dated 28.03.2017, levied penalty of Rs. 32,80,181/- under section 271AAB (1) (c) of the Act. The petitioner, being aggrieved by the penalty order, preferred appeal before the CIT (A) and also deposited Rs. 6,46,100/- being 20% of the penalty. 9. Thereafter, the Direct Tax Vivad Se Vishwas Scheme was introduced by the respondent and the petitioner decided to settle its pending appeals by taking benefit of the same and filed Form No. 1 and 2 under the Scheme on 30.01.2021. In Part A of the said Form 1, the petitioner opted not to pay the tax and filled necessary details about the reduction of Rs. 43,66,801/- in the MAT Credit in the Schedule D of the said Form 1 and claimed refund of Rs. 40,34,078/- on account of pre-payment of taxes. 10. The respondent, by issuing Form No. 3 dated 17.04.2021 determined tax payable before 30.04.2021 amounting to Rs. 4,06,211/- under the Scheme with following remarks: The assessee claimed refund of Rs. 29,76,720/- in the return of income filed for A.Y. 2013-14. While finalized the assessment, the said refund reduced to NIL. The assessee went in appeal and the Ld. CIT (A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BSR Code Challan Sr. No. Amount Rs Remark 1 06/04/2016 004329 84120 23,18,590/- Tax paid on Regular Assessment 2 22/05/2018 0004329 01967 6,46,100/- Payment of 20% of the Penalty levied 3 Total Tax paid 29,64,690/- 4 Refund of the Current Year adjusted 10,69,388/- For the Assessment Year 2013-14 as per Form 1 filed. (However, the learned A.O has given credit of Rs. 9,95,900/- only) 5 Total Taxes paid (3+4=5) 40,34,078/- Refund due as per Part E of Form 1 1. It was submitted that the respondent has erroneously considered that Rule 10 of the Direct Tax Vivad Se Vishwas Rules, 2020 [for short the Rules ] would not be applicable in the facts of the case as the petitioner has opted the option as per Clause (ii) of Rule 10 (1) of the Rules not to pay tax on account of carry forward by reducing MAT Credit from the carried forward MAT Credit amount. 16. Learned advocate Mr. Vora placed reliance on the Frequently Asked Question (FAQ) No. 53 issued by the Board s Circular No. 9/2020 dated 22.04.2020 which has recognized the option of the assessee to utilize carry forward of the reduced tax credit or loss or depreciation. FAQ and answer thereto reads as under: FAQ 53 reads as under: Question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Having heard learned advocate for the respective parties and considering the facts of the case, it would be germane to refer to Rule 10 of the Rules which is resorted to by the petitioner for utilizing the MAT Credit by reducing the same and not paying tax under the Scheme: 10. (1) Where the dispute in relation to an assessment year relates to reduction m Minimum Alternate Tax (MAT) credit to be carried forward, the declarant shall have an option to (i) include the amount by which MAT credit to be carried forward is reduced disputed tax and carry forward the MAT credit by ignoring such amount of reduction, or (ii) carry forward the reduced MAT credit. (2) Where the declarant exercises the option as per clause (ii) of sub-rule (1), he shall be liable to pay tax, including surcharge and cess, along with interest, if any, as a consequence of carrying forward reduced MAT credit in subsequent years: Provided that in cases other than the eligible search cases, In computing the reduced amount of MAT credit to be carried forward in clause (ii) of sub- rule (1), one-half of the amount by which MAT credit is reduced shall be considered for reduction, If such reduction is related to issues co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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