Re: MAT Credit set off
The addition was made u/s.68 in the case of a Company. The assessee-company has b/f. MAT Credit of which part adjustment is made during the subject year in the Return filed and balance c/f. to subsequent year. Post addition u/s.68 made by AO, the Company is entitled to MAT Credit based on assessed tax under normal rate of tax being higher than as per ROI when Book Profit u/s.115JB remained the same. While raising demand, credit for MAT was given as claimed in ROI. The assessee-company filed appeal before 31-1-2020 which is pending on that day disputing addition u/s.68. MAT credit not allowed properly is not disputed in GOA but rectification application application is filed u/s. 154.
Whether excess MAT credit that should have been granted be considered while arriving at disputed tax liability under VSV Scheme Act?
The assessee should request the AO to pass the rectification order for granting MAT Credit. Once the rectification order is passed the assessee will get the credit for excess MAT Credit . It is desirable to the assessee to raise an additional ground before the CIT(A) as regards not granting of excess MAT credit . CIT (A) may direct the AO to grant the MAT credit or direct the AO to pass the order on rectification application.
Yes. But check whether you have availed that MAT credit in any subsequent year. If you have utilized that credit in any subsequent year , you have to pay tax along with interest for that year. better option is to pay tax without interest in current year. Please check the facts.