The minimum alternate tax is paid when it is higher than the tax computed in accordance with normal provisions of the Act and the assessee is entitled to claim the said difference between MAT provisions and normal provisions as set off in the subsequent assessment years where it pays tax in pursuance of normal provisions. In the presentcase, the CIT(A) observed that the AO mentioned that there is no MAT credit for A.Ys. 2006-07 and 2007-08 and further, he opined that the assessee could not demonstrate what is the actual MAT credit available for the aforesaid two assessment years. We note that the assessee even before CIT(A) pleaded that there may be direction to the AO to give appeal effect to order of Tribunal and CIT(A). Admittedly, this was not considered by the CIT(A) and there was no reference in the order passed u/s. 154 of the Act regarding availability of MAT credit for A.Ys. 2006-07 and 2007-08.
Sec. 154 of Income Tax Act, 1961— Rectification of Mistake— Whether the MAT credit is available or not will be known, if the AO finds MAT credit on such examination, which can be carried forward to give credit in the year under consideration, thus, having considering the facts and circumstances of the case, there is no force in the arguments of ld. AR and taking into consideration the discussion, matter was remanded to the file of AO for its fresh consideration with the direction to compute the MAT credit available to the assessee in earlier years by giving effect to the orders of ITAT and CIT(A) - JOHN DEERE INDIA PVT. LTD. V/s DEPUTY CIT -  28 ITCD Online 053 (ITAT-PUNE)