| Question And Answer | |
|---|---|
| Subject: | MAT Credit and Addition u/s 68 |
| Category: | Income-Tax |
| Querist: | Radhey Shyam |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | cash credits, MAT credit |
| Date: | September 19, 2023 |
Assessing Officer has made addition u/s 68 to the tune of Rs. 20 Lakhs under the head Income from Other sources to be taxed u/s 115BBE @60%.
Assessee has PGBP Income to the tune of Rs. 2,30,989/-.
Assessee has MAT Credit Available to the tune of Rs. 10,13,277/- and Total prepaid taxes paid to the tune of Rs. 11,76,212/-.
Now while making the computation Sheet of Assessment Order, AO give the credit of Rs. 68997/- only and did not give the credit of Excess MAT Credit available to the tune of Rs. 944280/-.
Rectification has been filed and no order has been passed till date.
Kindly Clarify is the assessee entitled for the Excess MAT Credit u/s 15JAA to the tune of RS. 9,44,280/
As the Tax under normal provisions is greater than the tax on book profits, the assessee would have to pay tax as per normal provisions. The Assessee would be entitled to credit the excess MAT credit with the tax liability in the year the assessee is paying tax as per book profits.