MAHESHWARI WIRES PVT LTD,MEERUT V. ACIT,CIRCLE 1(1)(1) , MEERUT

ITA 4062/DEL/2024

AI Insights

Maheshwari Wires Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, which had upheld the denial of MAT credit by the Central Processing Centre, Bengaluru. The dispute centered on the assessee's claim for set off of accumulated MAT credits against the tax liability for the assessment year 2021-22. The assessee had declared accumulated MAT credits and sought to set off a portion against the normal tax liability, which was overlooked in the initial processing of their return. The Tribunal found merit in the assessee's claim and directed the grant of MAT credit as per the legal provisions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34225 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2021-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANDEEP PANWAR
• Assessee Lawyers: RAMIT KAKKAR
• Keywords: Rectification of order
• Section: 250; 154; 143(1)

Judgement Text

"ITA No.4062/Del/2024 Page | 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “E” BENCH: NEW DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI SUDHIR KUMAR, JUDICIAL MEMBER ITA No.4062/Del/2024 [Assessment Year : 2021-22] Maheshwari Wires Pvt.Ltd. 19A & B Mohkampur Industrial Complex, Phase II, Rithani Meerut, UP PAN-AADCM0032G vs ADIT, CPC, Bengaluru and ACIT, Circle-1(1)(1) Meerut, U.P APPELLANT RESPONDENT Appellant by Shri Ramit Kakkar, Adv. Respondent by Shri Mandeep Panwar, Sr.DR Date of Hearing 06.01.2025 Date of Pronouncement 06.01.2025 ORDER PER PRADIP KUMAR KEDIA, AM : The captioned appeal has been filed at the instance of the assessee seeking to assail the First Appellate order dated 11.07.2024 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld.CIT(A)”] u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the order dated 19.10.2022 passed by CPC, Bangalore u/s 154 of the Act pertaining to assessment year 2021-22. 2. As per captioned appeal, the assessee has challenged denial of MAT credit against the tax liability for the AY 2021-22 in question out of accumulated MAT credits available at the disposal of the assessee. 3. When the matter was called for hearing, the Ld. Counsel for the assessee pointed out that while filing the return of income, the assessee has declared accumulated MAT credits of INR 12,78,364/- available for set off against the tax liability of the subsequent AYs in accordance with law. Out of the aforesaid accumulated MAT credit for the AY 2021-22, the assessee has claimed set off of MAT credit to the extent of INR 1,17,383/- which amount denotes the difference between the tax liability under the normal provision vis-a-vis MAT ITA No.4062/Del/2024 Page | 2 liability. The tax liability as per the normal provision stood at INR 6,21,000/- whereas the tax liability under s. 115JA stood at INR 5,03,625/- and consequently the assessee was entitled to MAT credit of INR 1,17,383/- i.e. excess liability in the normal provisions over the MAT liability. The CPC, Income Tax Department while processing return of income under s. 143(1) of the Act over-looked the claim for credits out of MAT credits. The assessee sought rectification of the intimation passed under s. 143(1) of the Act which was denied without providing any reasons. 4. The assessee preferred appeal against the rectification order dated 19.10.2022 under s. 154 of the Act before JCIT(Appeals). The JCIT(Appeals) disposed off the appeal against the assessee on a different tangent and contrary to the provisions of law as noted in para 5.3 of the first appellate order. The Ld. Counsel for the assessee thus submitted that relief towards MAT credit under s. 115JAA to the extent of INR 1,17,383/- against the normal tax liability need to be given and remaining amount to be carried forward for set off against the tax liability in subsequent years in accordance with law. 5. On perusal of record placed before us, we find apparent merit in the plea of the assessee. As pointed out on behalf of the assessee, the assessee has claimed MAT credit to the tune of INR 1,17,383/- against the tax liability as per the normal provisions of the Act. The action of the assessee seeking MAT credit to the extent of excessive liability under normal provisions over MAT liability under s. 115JAA of the Act is in accordance with law. The reasons given by the Ld.CIT(A) that the assessee is not entitled to MAT credit is without any legal foundation. We, accordingly, direct the AO to grant MAT credit to the extent of INR 1,17,383/- as claimed. 6. In the result, the appeal of the assessee is allowed. Order dictated and pronounced in the open Court on 06.01.2025. Sd/- Sd/- (SUDHIR KUMAR) JUDICIAL MEMBER *Amit Kumar, Sr.P.S* (PRADIP KUMAR KEDIA) ACCOUNTANT MEMBER ITA No.4062/Del/2024 Page | 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI "