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2015 (10) TMI 67 - AT - Income TaxRectification of mistake - period of limitation - computation of MAT credit - whether the order u/s 154 passed by Assessing Officer is beyond the period allowed as per the provisions of Section 154(7) and therefore is beyond the time limit allowed by law and hence void - Held that:- In the instant case, the assessee company claimed credit for MAT in the Assessment Year 1998-99 in its return of income which was filed on 24.11.1998 and the income was assessed u/s. 143(1) on 31.03.2000. The MAT credit which was claimed at ₹ 21.31 lakhs related to the Assessment Year 1997-98. In the Assessment Year 1997-98, the Assessing Officer had given effect to the order passed by the Commissioner of Income Tax(Appeals) vide order dated 08.10.2003 and therein computed the assessee’s book profit u/s. 115JA at a loss. Thus, the assessee was not required to pay any MAT for Assessment Year 1997-08. Consequentially, the Assessing Officer vide order dated 07.05.2008 passed for the Assessment Year 1998-99 withdrew the MAT credit which was allowed earlier to the assessee. The order dated 07.05.2008 was passed by the Assessing Officer in consequence or to give full effect to the order of the Commissioner of Income Tax(Appeals) which was passed for the Assessment Year 1997-98 in the case of assessee itself. As per the order of the Commissioner of Income Tax(Appeals) passed for the Assessment Year 1997-98, the assessee was not liable to pay any amount of MAT. Therefore, the MAT paid earlier by the assessee for the Assessment Year 1997-98 was refunded to the assessee. Consequential to this, the MAT credit which was allowed to the assessee in the assessment for Assessment Year 1998-99 required to be withdrawn which the Assessing Officer withdrew vide order dated 07.05.2008. Though the Assessing Officer has mentioned the impugned order dated 07.05.2008 as passed u/s. 154 to rectify an apparent mistake but in fact it has been observed that the said order has not been passed to rectify any apparent mistake but was passed to give complete effect to the appellate order passed by the Commissioner of Income Tax (Appeals) for the Assessment Year 1997-98. - Decided against assessee.
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