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2017 (3) TMI 806 - ITAT MUMBAIRestricting the Minimum Alternative Tax (‘MAT’) credit - confirmation of demand - scope and ambit of section 143(1) - application for rectification u/s. 154 - Held that:- Section 143(1)(a) provides for adjustment to be made to the income or loss declared in the return, however same is circumscribed to arithmetical errors in the return, accounts or documents accompanying the return of income which can be rectified. What could be prima facie admissible or inadmissible has to be decided on the basis of information available in the return of income or the documents accompanying the said return of income and not from the other records. The record should pertain to the assessment year in question and not the earlier assessment years, as has been understood by the AO while denying the MAT credit to the assessee. In the return of income the assessee has sought MAT credit of ₹ 70,48,67,942/- which has been reduced to ₹ 34,38,72,162/- on the ground that assessment was made under the normal provisions of the Act for the A.Ys. 2006-07 to 2009- 10 and, therefore, no MAT credit is available to the assessee for these years. If the AO had this information on record, then it was incumbent upon the AO to select the return of income for scrutiny u/s. 143(2), because this was a record pertaining to earlier years on the basis of which he could have reason to believe that assessee’s claim in the return of income qua the MAT credit was excessive. Thus, we hold that the AO could not tinker with the return of income under the scope and ambit of section 143(1), because there was no arithmetical error or any mistake to make any adjustment while processing the return of income. In any case, now it has already been brought on record that in the A.Ys 2006-07 to 2009-2010 the additions made under the normal provisions, which was the ground to make the adjustments by the AO, stands deleted and, therefore, the assessee’s computation in those years would be made under the MAT provisions and consequently, the assessee would be eligible for MAT credit u/s. 115JAA. Accordingly, the ground raised by the assessee is allowed.
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