INCOME TAX ACT, 1961

Section 250

Appeal [CIT(A)] - Admission of fresh claim - Claim carried forward not having been granted on the ground that assessee had not claimed it in the return of income -

Assessee had undisputedly MAT credit which it did not claim in assessment year. Therefore, when assessee's return was processed and intimation given under section 143(1) it was not granted to the assessee. Therefore, assessee moved an application under section 154 before AO for rectification of the same which was denied on the reason that Supreme Court in Goetz (India) Ltd. v. CIT (2006) 284 ITR 323(SC) : 2006 TaxPub(DT) 1528 (SC) had held that AO cannot entertain a claim unless assessee had put forward such claim by filing return under section 139(1). Held: CIT(A) erred in dismissing the appeal of the assessee citing that the issue i.e. carry forward of MAT credit was debatable. Even though Supreme Court in Goetz (India) Ltd. (2006) 284 ITR 323 (SC) : 2006 TaxPub(DT) 1528 (SC) had held that AO was not competent to grant any claim without the assessee claiming it in its return of income under section 139(1), the court had specifically clarified that embargo on the power of AO not to entertain claims which was not claimed by assessee while filing of return under section 139(1) was not there for the appellate authorities. Therefore, claim of assessee regarding carry forward of MAT credit was accepted and matter was remanded back to AO so that he can verify the claim of the assessee and if found to be correct then AO should allow the claim of assessee in accordance with law.

Explained:Goetze (India) Ltd. v. CIT 2006 TaxPub(DT) 1528 (SC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

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