TaxTMI 
TaxTMI 
2012 (9) TMI 99
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.... year resulting in not allowing the credit of MAT u/s 115 JAA at Rs. 5,60,559/- and Rs. 1,84,984/- being the amount of surcharge and education cess (Part B of TTI of ITR 6 of previous year) which were paid in the previous year and credit of the same has to be allowed along with the sum of Rs. 56,05,585/- in this year for which records are available with the department. (b) For the purpose of calculating interest u/s 234B & 234C ignoring from the computation the amount of surcharge and education cess etc. under MAT of the previous year paid at Rs. 5,60,559/- and Rs. 1,84,984/-. (c) As a result in creating/charging extra demand of Rs. 8,74,195/- (Rs. 8,62,225/- + Rs. 11,970/-) while processing the return of income u/....
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.... surcharge and education cess amounting to Rs. 5,60,559/- & Rs. 1,84,984/-respectively. The assessee further observed that interest u/s 234B & 234C was calculated ignoring from the computation, the amount of surcharge and education cess which was paid during previous year along with MAT. Therefore, the assessee filed an appeal before Ld CIT(A) and prayed that due credit of MAT including surcharge & education tax should be considered u/s 115JAA and in support relied upon Explanation 2 of section 115JB which was inserted by Finance Act, 2008 with retrospective effect from 1.4.2001. A further prayer was made for calculation of interest u/s 234B & 234C after giving proper credit of MAT including surcharge and education tax. 3. The Ld AR furthe....
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....are not admissible for claim of credit as per provisions of the section 115JAA." 4. Aggrieved the assessee filed appeal before this Tribunal. 5. At the outset, the Ld AR argued that Ld CIT(A) has referred to section 2(43) for meaning of tax paid which instead should have been read together with explanation 2 to section 115JB The Ld AR further argued that definition of tax has been given in Explanation (2) to section 115JB according to which tax includes surcharge and education cess. He further argued that definition of tax u/s 115JB as per explanation 2is applicable to all four sections of Chapter-XIIB. In this respect, the Ld AR filed a compendium on orders of IT/WT by Dr. Girish Ahuja which at question No. 20.14 explain the calculation ....
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....ncome as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2010, is less than fifteen per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be the amount of income-tax at the rate of fifteen per cent. (2) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 (1 of 1956)}" The above section clearly talks that such book profit shall be deemed to be total income of the ass....
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....n of book profit which is read as under:- "Explanation-1 for the purpose of this section book profit means the net profit as shown in the P&L Account for the relevant previous year prepared under sub section (2) as increased by :- (a) the amount of income tax paid or payable and the provisions thereof: (b), (c), (d), (e), (f)** ** ** The above explanation 1 clarifies that explanation 2 to section 115JB was inserted to define the meaning of tax (which of course includes education tax and surcharge) for the purpose of calculating book profits liable to tax u/s 115JB and it cannot be extended to sections 115JB or section 115JAA of the Act. In view of the above provisions, we are of the considered opinion....