TATA MOTORS LTD.,MUMBAI vs. THE ASSTT. CIT (LTU)-1, , MUMBAI

This appeal in A.Y.2015-16 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-Mumbai in appeal No. ITBA Appeal No. CIT(A)-1, Mumbai/10926/2018-19 dated 30/01/2020 (ld. CIT(A) in short) against the order of assessment passed u/s.154 r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 25/01/2019 by the ld. DCIT(LTU-2), Mumbai (hereinafter referred to as ld. AO).

The ground No.1 raised by the assessee is challenging validity of the ld. AO invoking jurisdiction u/s.154 of the Act. This ground was stated to be not pressed at the time of hearing and accordingly, the same is reckoned as statement made from the Bar and dismissed as not pressed.

The ground No.2 raised by the assessee is only with regard to computation of set off of MAT credit u/s.115JAA of the Act i.e. whether it should be excluding surcharge and cess or including surcharge and cess.

We have heard rival submissions and perused the materials available on record. We find that assessee is engaged mainly in the business of design, manufacture and sale of vehicles and parts thereon. The return of income for the A.Y.2015-16 was filed by the assessee company on 25/11/2015 declaring loss of Rs.4507,15,19,875/- under normal provisions of the Act and book loss of Rs.3281,73,74,455/- u/s.115JB of the Act. Since, there was loss both under normal provisions of the Act as well as u/s.115JB, there was no occasion for the assessee to claim MAT credit u/s.115JAA of the Act. The ld. AO passed an order u/s.143(3) on 23/01/2019 determining total loss of Rs.41,81,8,25,612/- under normal provisions of the Act and assessed the income of the assessee from specified foreign company u/s.115BBD of the Act at Rs.1523,51,75,826/-. The ld. AO also computed book loss u/s.115JB of the Act at Rs.2956,86,17,512/-. After passing of assessment order u/s.143(3) of the Act dated 23/01/2019, the ld. AO suo-moto passed the rectification order u/s.154 of the Act r.w.s. 143(3) of the Act on 25/01/2019 wherein MAT credit u/s.115JAA of the Act was given by the ld. AO to the extent of tax payable excluding surcharge and education cess. The grievance of the assessee was that the ld. AO granted short MAT credit of Rs.30,39,41,737/- comprising of surcharge of Rs.22,85,27,637/- and education cess of Rs.7,54,14,120/-. Total MAT credit granted by the ld. AO was Rs.228,52,76,374/- instead of 258,92,18,131/-. This action of the ld. AO was upheld by the ld. CIT(A).

Aggrieved, the assessee is in appeal before us.

In the result, appeal of the assessee is partly allowed.