Minimum Alternate Tax (MAT) Provisions Inapplicable Once Concessional Tax Regime Option Exercised: ITAT Deletes ₹36.67 Cr Addition [Read Order]

The Income TaxAppellate Tribunal (ITAT) Delhi Bench has held that the provisions relating to Minimum Alternate Tax (MAT) under Section 115JB of the Income Tax Act, 1961 are not applicable once an assessee opts for the concessional tax regime. The Tribunal accordingly upheld the deletion of an addition of ₹36.67 crore made by the Central Processing Centre (CPC).

The appeal was filed by the Revenue against Western Developers Private Limited for the Assessment Year 2024-25. The Bench comprising Yogesh Kumar and Sanjay Awasthi dismissed the Department’s appeal and affirmed the relief granted by the first appellate authority.

The dispute arose after the CPC while processing the return under Section 143(1) denied the assessee’s claim for taxation under the concessional regime and consequently invoked Section 115JB. The CPC computed book profits at ₹36.67 crore and raised a tax demand of approximately ₹6.91 crore under MAT provisions.

The assessee contended that it had already exercised the option for the concessional tax regime through filing of Form 10-IC and had been consistently assessed under the same regime for Assessment Years 2020-21 to 2022-23. It was argued that once such an option is exercised Section 115JB ceases to apply by virtue of Section 115JB(5A).

The Revenue argued that the assessee was not entitled to the benefit because Form 10-IC had allegedly not been filed within the due date prescribed under Section 139(1). The Department also pointed out that a fresh Form 10-IC had later been filed for Assessment Year 2025-26.

The Tribunal observed that the appellate authority had correctly interpreted the statutory provisions. The Bench further noted that the assessee’s claim under the concessional regime had already been accepted by the CPC in earlier years thereby supporting the principle of consistency.

Accordingly, the Tribunal held that MAT provisions were inapplicable in the present case and dismissed the Department’s appeal.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates