Surcharge and Cess Included in MAT Credit Calculation

The Appellate Tribunal ITAT Chennai held that surcharge and education cess are part of income-tax for computing MAT credit under Section 115JAA of the Income-tax Act, 1961. The Tribunal directed the Assessing Officer to verify and allow the assessee's claim for MAT credit, following the procedure from a previous case. As a result, the Tribunal dismissed the Revenue's appeal, pronouncing the order on 1st April 2019 in Chennai.

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Issues:
Inclusion of surcharge and education cess while computing MAT credit under Section 115JAA of the Income-tax Act, 1961.

The judgment by the Appellate Tribunal ITAT Chennai involved the consideration of the inclusion of surcharge and education cess while computing MAT credit under Section 115JAA of the Income-tax Act, 1961. The Tribunal heard arguments from both the Ld. Departmental Representative and the Ld. counsel for the assessee. It was noted that in a previous case for assessment year 2009-10, a similar issue had been brought before the Tribunal in the assessee's own case. The Tribunal, relying on the judgment of the Apex Court in CIT v. K. Srinivasan (1972) 83 ITR 346, determined that surcharge and education cess are part of income-tax. The Tribunal also observed that the CIT(Appeals) had directed the Assessing Officer to verify the MAT credit, which was beyond the CIT(Appeals)'s power. Therefore, the Tribunal, under its jurisdiction conferred by Section 254(1) of the Act, directed the Assessing Officer to verify the claim of the assessee and allow the claim with regard to MAT credit. The Tribunal instructed the Assessing Officer to follow the same procedure as in the case of assessment year 2009-10. Consequently, with this direction, the appeal of the Revenue was dismissed by the Tribunal. The order was pronounced in court on 1st April 2019 at Chennai.

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