Disallowance of ₹1.87 Crore MAT Credit in Schindler India’s Return of Income: ITAT Remands matter to AO to Verify & Allow Necessary Credit [Read Order]
The Bench directed the Assessing Officer to verify Schindler India’s claim of MAT credit and allow the same in accordance with law after duly verifying the claims
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) recently directed the jurisdictional Assessing Officer (AO) to verify and allow necessary MAT (Minimum Alternate Tax) credit of 1,87,30,304 that had earlier been not been granted in the return of income filed by Schindler India Private Limited (Schindler).
The tribunal was tasked with adjudicating a multifarious appeal filed by elevator and escalator manufacturing giant Schindler, pertaining to the Assessment Years (A.Y.) 2013–14 and 2014–15.
Schindler’s appeals raised several grounds including transfer pricing adjustments on royalty and management charges, the treatment of doubtful debts under section 115JB, shortfall in TDS credit, disallowance of provident fund contributions, levy of interest under sections 234B and 234C and initiation of penalty proceedings.
Some of the grounds were withdrawn in light of an Advance Pricing Agreement while others were dismissed, and some stood remanded to the Assessing Officer (AO) for verification.
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The appeals stemmed from assessment orders passed under section 143(3) read with section 144C(13) of the Income Tax Act, 1961, in consequence of directions of the Dispute Resolution Panel (DRP).
Among the grounds pressed, Ground No. 6 for AY 2013–14 related to the non-grant of MAT credit under section 115JAA of the Act.
Schindler India, represented by Chandani Shah and Nidhi Agarwal contended before the Tribunal that the assessing officer had erred in not granting the appellant the claimed MAT credit of ₹1,87,30,304 that was claimed as under section 115 JAA of the Income Tax Act,1961.
Meanwhile Ajay Chandra, departmental representative appearing on behalf of the respondent Deputy Commissioner of Income Tax did not raise any specific objections towards the contentions raised by the appellant.
After hearing submissions and examining the relevant records, the two-member Bench constituted by Vikram Singh Yadav, Accountant Member and Sandeep Singh Karhail, Judicial Member set aside the matter to the file of the relevant assessing officer to allow the necessary credit.
However, the AO was directed to verify the claim made by the appellant after carrying out necessary verification.
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