In course of assessment proceedings, the Assessing Officer while verifying the return of income and computation of income filed by the assessee found that the assessee had claimed Minimum Alternate Tax (MAT) credit of Rs. 20,12,95,237, pertaining to the assessment year 2006-07. However, while computing tax on book profit under section 115JB of the Act, the Assessing Officer allowed MAT credit under section 115JAA of the Act for an amount of Rs. 6,99,46,873. The assessee challenged the reduction of MAT credit in an appeal filed before the first appellate authority.