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2023 (6) TMI 820 - AT - Income Tax


Issues Involved:
The appeal pertains to Assessment Year 2016-17 and challenges the order passed by the Commissioner of Income Tax (Appeals) related to the short-granting of set-off of MAT credit under section 115JAA of the Income Tax Act, 1961.

Issue 1 - Short-granting of MAT credit under section 115JAA:
The appellant contested the dismissal of the ground of appeal regarding the short-granting of MAT credit under section 115JAA by the Commissioner of Income Tax (Appeals). The appellant argued that the MAT credit should include surcharge and education cess, which were not included by the Assessing Officer under section 154 of the Act. The appellant relied on case law to support their position, emphasizing that tax liability for MAT should consider surcharge and education cess as part of the tax. The appellant sought rectification under section 154, which the Assessing Officer failed to do, and the Commissioner of Income Tax (Appeals) upheld this decision. The Revenue representative argued that the issue was debatable, given the reliance on case law by the appellant, and therefore, not suitable for rectification under section 154.

The Commissioner of Income Tax (Appeals) noted that the issue of whether MAT credit should include surcharge and education cess did not arise from the order under section 154 but from the order under section 143(1) of the Act. The Commissioner pointed out that the appellant had not appealed against the order under section 143(1) and that the issue was debatable, making it unsuitable for rectification under section 154 unless a clear mistake was evident. The Commissioner's decision was based on the understanding that the issue could not be resolved under section 154 due to its debatable nature and lack of appeal against the initial order under section 143(1).

In conclusion, the Income Tax Appellate Tribunal affirmed the decision of the Commissioner of Income Tax (Appeals) regarding the short-granting of MAT credit under section 115JAA. The Tribunal found no error in the Commissioner's decision, emphasizing that the issue was debatable and not suitable for rectification under section 154. Therefore, the appeal filed by the assessee was dismissed.

 

 

 

 

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