Details for MAT Credit u/s 115JAA Available on Assessment Records: ITAT directs to allow ₹12.94 Lakh Credit [Read Order]

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) directed the Assessing Officer (AO) to allow Minimum Alternate Tax (MAT) Credit amounted to ₹12.94 lakh under section 115JAA of the Income Tax Act stating that all requisite details were available on assessment records.

Shri Ambika Metaliks Pvt. Ltd. (assessee) who had appealed against the order of the Commissioner of Income tax (Appeals) [CIT(A)] dated 22.10.2024 for the Assessment Year (AY) 2016-17. The appeal of the assessee pertained to disallowance of MAT credit.

The CIT(A) upheld the AO's decision to not allow the MAT credit u/s 115JAA of ₹12,94,923. The CIT(A) had disallowed the MAT credit on the grounds that the assessee had not furnished any details.

The two-member bench, comprising Duvvuru RL Reddy (Vice President) and Rajesh Kumar (Accountant Member), observed that the claim for MAT credit of ₹12,94,923/- was apparent from the order passed under Section 143(1) of the Income Tax Act dated 22.07.2017.

The Tribunal also examined the Income Tax Returns (ITR) for A.Y. 2012-13, 2014-15, and 2016-17 and found that the information about the said MAT credit was available in the assessment records.

The Tribunal noted that the claim of the assessee was as per the provisions of the Act. Accordingly, the tribunal set aside the order of the CIT(A). The tribunal directed the AO to allow the MAT credit of ₹12,94,923 under section 115JAA of the Income Tax Act. The appeal of the assessee was allowed.

MAT credit is the excess tax paid by a company under the Minimum Alternate Tax (MAT) provisions, which can be carried forward and set off against its regular tax liability in future years. The provisions for MAT credit are detailed in Section 115JAA of the Income Tax Act.

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