This analysis explores the tax appeal case of Santoshi Hyvolt Electricals Pvt Ltd against the ACIT, Circle-22(2), Delhi, focusing on the computation of Minimum Alternate Tax (MAT) under section 115JB for the assessment year 2019-20.
The appeal by Santoshi Hyvolt Electricals Pvt Ltd challenges the order issued by the National Faceless Appeal Centre (NFAC) regarding the computation of MAT, specifically questioning the handling and acceptance of Form 29B.
The central issue in this appeal was the interpretation and application of Form 29B for computing MAT. The tribunal decided to remand the case to the Jurisdictional Assessing Officer for a detailed computation, ensuring all aspects of Form 29B were correctly considered.
Section 115JB of the Income Tax Act, 1961 is discussed, emphasizing its role in ensuring that companies pay a minimum amount of tax. Rule 40B of the Income Tax Rules, 1962, which governs the submission of Form 29B, is also explored to clarify its significance in the MAT calculation.
The remand to the Jurisdictional Assessing Officer highlights the tribunal’s approach to ensuring fairness in tax computation processes. It underscores the importance of accurate documentation and adherence to procedural norms.
This case serves as a significant precedent for issues related to the application of MAT and the proper use of Form 29B, affecting how similar cases might be handled in the future.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform