Case laws on mat

Ranganathan Industries Private Limited v. Addl. CIT in I.T.A. No.2434/Mds/ 2004

"Upon a careful consideration of the issue we find that, after amalgamation the assessee company is entitled to all the assets, claims, etc. of the erstwhile company, which is also supported by Hon'ble High Court order in this regard. Further, when the assessee company is now being assessed in place of erstwhile company and the TDS credit pertaining to the erstwhile company is being given credit to the assessee company, there is no reason why a different treatment should be given to the MAT credit available pertaining to the erstwhile company. We do not agree with the learned Commissioner of Income Tax (Appeals) that there is need for specific mention in this regard in Section 115JAA as the Carry forward of MAT credit of erstwhile company by amalgamated company is in-built in the scheme of amalgamation as well as the scheme of MAT credit. Hence, we set aside the order of learned Commissioner of Income Tax (Appeals) in this regard and decide the issue in favour of the assessee. "  

SKOL Breweries Ltd. v. ACIT, 28 ITAT India 998 (Mum.) ITA No. 313/Mum./07 A.Y. 2003-04 decision dated 15-5-2008

 The Tribunal observed :

"We have duly considered the rival contentions and gone through the record carefully. The Ld. CIT(A) while denying the benefit of taxes paid by M/s.. Charminar Breweries Ltd. (CBL) u/s.115JA has observed that M/s.. CBL was amalgamated with erstwhile SKOL and ceased to exist. Once the company ceases to exist then any benefit available to the company would not devolve upon the transferee company. For the above view CIT(A) has relied upon the decision of Hon’ble SC in the case of Sarawati Industries Syndicate 186 ITR 278. In our opinion Ld. first appellate authority has referred to this decision without context. The facts of that case are quite different. In that case, an assessee ‘A’ has paid certain amount to ‘B’ towards sales tax liability. ‘B’ who collected the sales tax from ‘A’ disputed the liability before the Sales tax Tribunal. During the pendency of the litigation ‘A’ ceased to exist and its business was taken over by ‘C’. The Sales tax Tribunal decided the issue in favour of ‘B’ and held that no sales tax is payable. Accordingly ‘B’ returned the money to ‘C’. This amount was sought to be taxed u/s.41(1) of the Act according to the provision as it existed in AY 1965 – 66. In the context the Hon’ble Supreme court has held that this amount is not taxable in the hands of ‘C’. The ingredients provided in the definition of amalgamation is altogether different from the condition provided in S. 41(1) in A.Y. 1965-66. The assets and liabilities on the date of amalgamation of the amalgamating company would become assets and liabilities of the amalgamated company. If M/s. Charminar Breweries has paid tax u/s.115JA of the Act in earlier assessment years and that benefit is permissible u/s.115JA of the Act then that cannot be denied to the assessee simply for the reason that M/s. Charminar Breweries is not in existence. The Ld. CIT(A) has erred in placing his implicit reliance upon the judgment of Hon’ble Supreme court. In principle we allow this ground of appeal of the assessee, set aside the issue to the file of A.O for verification of the taxes paid by M/s. Charminar Breweries and how that benefit would devolve upon the assessee. The AO shall verify the details and then grant the benefit to the assessee."