DCIT Vs Maruti Suzuki India Ltd. (ITAT Delhi)
Incorrect Tax Credit Figure- Refund Dispute Reopened: ITAT Sends Maruti Suzuki Tax Credit Issue Back for Verification
Revenue appealed against the order of CIT(A) arising from order passed u/s 254/250/143(3) dated 27.01.2012. Assessee, engaged in manufacturing cars under the brand Maruti Suzuki, had originally filed return declaring income of Rs.671.46 crores which was revised to Rs.668.42 crores. Assessment u/s 143(3) was completed at Rs.820.47 crores & went through several rounds of litigation. After Tribunal’s order dated 29.10.2010, AO while giving effect computed income at Rs.639.50 crores & allowed tax credit of Rs.284.21 crores as per ITNS-150 & determined refund of Rs.16.36 crores. Assessee claimed that credit of tax paid was wrongly computed & correct tax paid was Rs.287.42 crores, thereby entitling it to an additional refund of Rs.3,20,87,719/-.
CIT(A), after examining orders dated 19.12.2008 & 27.01.2012, held that Assessee’s claim was correct & directed AO to issue the balance refund along with interest u/s 244A. Revenue’s appeal was earlier dismissed by Tribunal on 18.03.2021 but was recalled on Miscellaneous Application as Grounds 1 & 2 were not adjudicated.
Tribunal noted that Assessee pointed to ITNS-150 computation but failed to produce the order dated 19.12.2008 which allegedly allowed credit of Rs.284.21 crores. In the absence of this crucial record, Tribunal held that AO must be given an opportunity to verify whether due credit of tax paid was allowed or not. Tribunal therefore directed AO to verify the correct tax payments & allow lawful credit after granting proper opportunity to Assessee.
