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2019 (8) TMI 1331 - AT - Income TaxCarry forward and set off of MAT credit - in the hand of demerged company OR resulting company after sanctioning the scheme of demerger - HELD THAT:- Whatever, MAT credit available to the assessee prior to that date even though, the same is arised on account of SEZ units, the credit for such MAT credit needs to be allowed to the assessee, but not to the demerged SEZ units. We further noted that TCS Ltd has not claimed credit for MAT credit in their return of income, which is evident from the fact that the AO of TCS Ltd in their assessment has categorically stated that MAT credit of TCS e-serve International Ltd will be available to the TCS e-serve International Ltd. Only. We, further stated that MAT credit should go into entity, but not with resulting company. Therefore, we are of the considered view that the Ld.CIT(A) has rightly considered the issue in light of provision of Act and also, the scheme of demerger approved by the Hon’ble Bombay High Court, while directing the AO to allow carry forward and set off of MAT credit. We are of the considered view that the Ld.CIT(A) has rightly directed the AO to allow carry forward and set off of MAT credit to the assessee and hence, we are inclined to uphold the findings of the Ld.CIT(A) and dismissed appeal filed by the revenue.
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