TATA MOTORS LTD., MUMBAI V. THE ASSTT. CIT (LTU)-1, , MUMBAI

ITA 1643/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6025 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Appeal Filed On: 30-06-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Rectification of order
• Section: 143(3); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , E BENCH MUMBAI BEFORE : SHRI M.BALAGANESH, A CCOUNTANT MEMBER & SHRI AMARJIT SINGH , JUDICIAL MEMBER ITA NO. 1643 /MUM/ 20 20 ( ASSESSMENT YEAR : 2015 - 16 ) M/S. TATA MOTORS LTD., BOMBAY HOUSE, 24, HOM I MODY STREET HUTATMA CHOWK MUMBAI 400 001 VS. THE ASST. CIT (LTU) - I 29 TH FLOOR, CENTRE - I WORLD TRADE CENTRE CUFFE PARADE MUMBAI 400 005 PAN/GIR NO. AAACT2727Q (APPELLANT ) .. (RESPONDENT ) ASSESSEE BY SHRI RAJAN VORA REVENUE BY SHRI SANJEEV KAS HYAP DATE OF HEARING 04 /0 9 /2021 DATE OF PRONOUNCEMENT 15 / 09 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 1643/MUM/2020 FOR A.Y. 2015 - 16 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - MUMBAI IN APPEAL NO. ITBA A PPEAL NO . CIT(A) - 1, MUMBAI/10926/2018 - 19 DATED 30/01/2020 (LD. CIT(A) IN SHORT) AGAINST THE ORDER OF ASSESSMENT PASSED U/S.154 R.W.S. 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) DATED 25/01/2019 BY THE LD . DCIT(LTU - 2), MUMBAI (HEREINAFTER REFERRED TO AS LD. AO). ITA NO . 164 3/MUM/2020 M/S. TATA MOTORS LTD., 2 2. THE GROUND NO.1 RAISED BY THE ASSESSEE IS CHALLENGING VALIDITY OF THE LD. AO INVOKING JURISDICTION U/S.154 OF THE ACT. THIS GROUND WAS STATED TO BE NOT PRESSED AT THE TIME OF HEARING AND ACCO RDINGLY, THE SAME IS RECKONED AS STATEMENT MADE FROM THE BAR AND DISMISSED AS NOT PRESSED. 3. THE GROUND NO.2 RAISED BY THE ASSESSEE IS ONLY WITH REGARD TO COMPUTATION OF SET OFF OF MAT CREDIT U/S.115JAA OF THE ACT I.E. WHETHER IT SHOULD BE EXCLUDING SURC HARGE AND CESS OR INCLUDING SURCHARGE AND CESS. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT ASSESSEE IS ENGAGED MAINLY IN THE BUSINESS OF DESIGN, MANUFACTURE AND SALE OF VEHICLES AND PARTS THEREON. THE RE TURN OF INCOME FOR THE A.Y.2015 - 16 WAS FILED BY THE ASSESSEE COMPANY ON 25/11/2015 DECLARING LOSS OF RS.4507,15,19,875/ - UNDER NORMAL PROVISIONS OF THE ACT AND BOOK LOSS OF RS.3281,73,74,455/ - U/S.115JB OF THE ACT. SINCE, THERE WAS LOSS BOTH UNDER NORMAL P ROVISIONS OF THE ACT AS WELL AS U/S.115JB, THERE WAS NO OCCASION FOR THE ASSESSEE TO CLAIM MAT CREDIT U/S.115JAA OF THE ACT. THE LD. AO PASSED AN ORDER U/S.143(3) ON 23/01/2019 DETERMINING TOTAL LOSS OF RS.41,81,8,25,612/ - UNDER NORMAL PROVISIONS OF THE AC T AND ASSESSED THE INCOME OF THE ASSESSEE FROM SPECIFIED FOREIGN COMPANY U/S.115BBD OF THE ACT AT RS.1523,51,75,826/ - . THE LD. AO ALSO COMPUTED BOOK LOSS U/S.115JB OF THE ACT AT RS.2956,86,17,512/ - . AFTER PASSING OF ASSESSMENT ORDER U/S.143(3) OF THE ACT D ATED 23/01/2019, THE LD. AO SUO - MOTO PASSED THE RECTIFICATION ORDER U/S.154 OF THE ACT R.W.S. 143(3) OF THE ACT ON 25/01/2019 WHEREIN MAT CREDIT U/S.115JAA OF THE ACT WAS GIVEN BY THE LD. AO TO THE EXTENT OF TAX PAYABLE EXCLUDING SURCHARGE AND EDUCATION CE SS. THE G RIEVANCE OF THE ASSESSEE WAS THAT THE LD. AO GRANTED SHORT MAT CREDIT OF RS.30,39,41,737/ - COMPRISING OF SURCHARGE OF ITA NO . 164 3/MUM/2020 M/S. TATA MOTORS LTD., 3 RS.22,85,27,637/ - AND EDUCATION CESS OF RS.7,54,14,120/ - . TOTAL MAT CREDIT GRANTED BY THE LD. AO WAS RS.228,52,76,374/ - INSTEAD O F 258,92,18,131/ - . THIS ACTION OF THE LD. AO WAS UPHELD BY THE LD. CIT(A). 5 . AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 6 . THIS ISSUE IS NO LONGER RES - INTEGRA IN VIEW OF THE DECISION IN ASSESSEES OWN CASE BY THIS TRIBUNAL FOR A.Y.2014 - 15 IN ITA NO .2397/MUM/2019 DATED 25/06/2021 , WHEREIN , IT WAS CATEGORICALLY HELD THAT WHI LE COMPUTING MAT CREDIT U/S.115 J AA OF THE ACT, THE TAX SHOULD BE INCLUSIVE OF SURCHARGE AND CESS. SIMILAR VIEWS WERE TAKEN BY THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF SREI IN FRASTRUCTURE FINANCE LTD., VS. DCIT REPORTED IN 395 ITR 291(CAL) AND THE HONBLE MADRAS HIGH COURT IN THE CASE OF DCIT VS. SCOPE INTERNATIONAL PVT. LTD., IN TAX CASE APPEAL NO.588 OF 2019 DATED 16/8/2019. RESPECTFULLY FOLLOWING THE AFORESAID DECISIONS, WE ALLOW THE GROUND NO.2 RAISED BY THE ASSESSEE ON MERITS. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON 15 / 09 /202 1 BY WAY OF PROPER MENTIONING IN THE NOTICE BOARD. SD/ - ( AMARJIT SINGH ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 15 / 09 / 2021 KARUNA , SR.PS ITA NO . 164 3/MUM/2020 M/S. TATA MOTORS LTD., 4 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBA I 6. GUARD FILE. //TRUE COPY//