ITAT allowed credit for brought forward MAT from gross demand
ITAT allowed credit for brought forward MAT from gross demand
Assessee filed its return of income and assessment was completed. Subsequently, AO reopened assessment and issued notice u/s 154 (of Income Tax Act, 1961) on the ground that excess MAT credit was given resulting in under charging of interest u/s 234B (of Income Tax Act, 1961) and 234D (of Income Tax Act, 1961). CIT(A) allowed partial relief to the assessee. ITAT held that that credit for brought forward MAT is to be given from gross demand before interest is charged under section 234B (of Income Tax Act, 1961).-501446
1. The assessee filed its return of income for A.Y. 2001-02 declaring total income of Rs 11,38,79,120/- under normal provisions and Book Profit of Rs 11,95,97,648/- u/s 115JB (of Income Tax Act, 1961). Subsequently, a revised return was filed wherein income of Rs 7,83,83,421/- was declared under normal provisions of the Act. The case was taken for scrutiny and the assessment was completed u/s 143(3) (of Income Tax Act, 1961) werein the total income under the normal provisions was assessed at Rs 13,66,33,390/-.
2. CIT(A) allowed the assessee's appeal and assessee's income was re-computed at Rs 6,63,87,460/-.
3. Subsequently, proceedings u/s 147 (of Income Tax Act, 1961) were initiated, and notice u/s 148 (of Income Tax Act, 1961) was issued to the assessee. The total income of the assessee under normal provisions was determined at Rs 7,29,60,700/- thereby granting the assessee refund of Rs 8,75,000/-. Subsequently, the AO issued notice u/s 154 (of Income Tax Act, 1961), on the grounds that excess MAT credit was given resulting in under charging of interest under section 234B (of Income Tax Act, 1961) and 234D (of Income Tax Act, 1961).
4. CIT(A) allowed partial relief to the assessee.
5. On appeal, the ITAT held as under:
6. " We have carefully perused the decision of the Hon'ble Bombay High Court in the case of APAR
Industries Ltd. (323 ITR 411) (Bom) and find that one of the questions before the Hon'ble High Court was whether interest under section 244A (of Income Tax Act, 1961) was allowable on the refundable taxes arrived at after giving credit of brought forward MAT from the gross demand. Their Lordships held this issue in favour of the assessee. Respectfully following the aforesaid decision of the Hon'ble Bombay High Court in the case of APAR Industries Ltd. (supra), we hold and direct that assessee is entitled to be allowed interest under section 244A (of Income Tax Act, 1961) on refundable taxes after giving credit of brought forward MAT credit. Consequently, ground No. 1 of the Revenue's appeal is dismissed.
7. "We have carefully perused the decision of the Hon'ble Bombay High Court in the case of APAR Industries Ltd. (323 ITR 411) (Bom) and find that one of the questions before the on'ble High Court was whether credit for brought forward MAT is to be allowed from the gross demand before charging interest under section 234B (of Income Tax Act, 1961). Their Lordships decided the issue in favour of the assessee holding that credit for brought forward MAT is to be given from gross demand before charging interest under section 234B (of Income Tax Act, 1961). Respectfully following the aforesaid decision of the Hon'ble Bombay High Court in the case of APAR Industries Ltd. (supra), we hold that credit for brought forward MAT is to be given from gross demand before interest is charged under section 234B (of Income Tax Act, 1961). Consequently, ground No. 2 raised by the Revenue is dismissed.”
Case Reference- ACIT vs M/s. Uniphos Enterprises Ltd.
IN THE INCOME TAX APPELLATE TRIBUNAL "F" Bench, Mumbai Before Shri Jason P. Boaz, Accountant Member and Shri Sandeep Gosain, Judicial Member ITA No. 925/Mum/2014(Assessment Year: 2001-02)
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