JCIT(OSD) Vs Garware Hi-Tech Films Limited (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT) in Mumbai has dismissed an appeal filed by the revenue department against Garware Hi-Tech Films Limited, upholding a lower appellate authority’s decision that directed the re-computation and adjustment of Minimum Alternate Tax (MAT) credit for the company. The ruling, delivered on July 21, 2025, in case ITA No.1133/Mum/2025, found the revenue’s challenge to be without merit as it focused on a consequential adjustment rather than the substantive deletions that led to it.
The case originated from the company’s return of income for the Assessment Year 2021-22, which was filed under section 139(1) of the Income-tax Act, 1961. During the initial processing of the return by the Central Processing Centre (CPC) in Bengaluru under section 143(1), two additions were made to the company’s income. These were for research and development expenditure under section 35(1)(i) amounting to approximately Rs. 1.06 crore and a separate addition under section 41 for approximately Rs. 1.14 crore.
Simultaneously, the company had claimed a set-off of brought forward MAT credit amounting to Rs. 29,17,19,506 in its return. The company, however, later determined it was eligible for a higher MAT credit of Rs. 29,94,40,364, out of a total brought forward credit of Rs. 37,83,32,363.
