INCOME TAX ACT, 1961

Section 154 read with section 115JAA

Rectification under section 154 - Alleged availment of excess MAT credit by assessee - Non consideration of appeal orders passed in favour of assessee for earlier years - Remand of matter

Order under section 143(3) read with section 154C(3) was passed by AO. AO initiated 154 proceedings on allegation that excess MAT credit was given to assessee under section 115JAA. Assessee contended that it had favourable orders from Tribunal and as well as CIT(A) in earlier years, wherein MAT credit was much higher than credit given by AO. Assessee sought remand of matter to AO directing him to compute MAT credit of earlier years given by Tribunal and CIT(A). Held: It was found that even before CIT(A), assessee pleaded that there may be direction to AO to give appeal effect to order of Tribunal and CIT(A). Admittedly, this was not considered by CIT(A) and there was no reference in order passed under section 154 regarding availability of MAT credit for said assessment years (2006-07 and 2007-08). Therefore, unless appeal effect was given, then only whether MAT credit was available or not will be known, if AO would find MAT credit on such examination, which can be carried forward to give credit in the year under consideration. Thus, matter was remanded to AO for fresh consideration with direction to compute MAT credit available to assessee in earlier years by giving effect to orders of Tribunal and CIT(A).

REFERRED :

FAVOUR : Matter remanded

A.Y. : 2011-12

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