Assessee engaged in development of housing project units isn’t exempt from payment of MAT

Assessee engaged in development of housing project units isn’t exempt from payment of MAT

Gee City Builders (P.) Ltd. v. DCIT – [2019] 106 taxmann.com 69 (Chandigarh – Trib.)

The assessee was a Private Limited company dealing in development of housing project units. It filed its return of income for the impugned assessment years declaring income of Rs. 2.20 lakhs.

Assessing Officer (AO) framed assessment under section 153A, read with section 143(3) and assessed the total income at Rs. 12.75 lakhs and the tax payable under MAT was determined at Rs. 96.28 lakhs. The Tax computed under MAT being higher than that under the normal provisions, the same was determined as payable by the assessee. On appeal, the assessee contended that it was exempt from paying tax under MAT as per section 115JB(6).

The Chandigarh Tribunal held that benefit of exemption from MAT was provided only for business, carried on by persons who had got approvals under SEZ Act and which were carried on in SEZ or units therein.

Therefore, in case assessee was engaged in development of housing project units which were neither units in SEZ nor assessee was developer of SEZ, its income would not be exempt from payment of MAT.