TaxTMI 
TaxTMI 
2014 (6) TMI 215
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....zed processing Centre (CPC), Bangalore raising a demand of Rs.10,92,766/- after rejecting the application made by the assessee u/s 154 for computation of tax payable by the assessee which according to the assessee to have been computed by levying surcharge and education cess after giving credit for tax which tax has already been paid by the assessee (appellant) company u/s 115JAA in the earlier years. In the rectification order passed by the CPC, Bangalore vide its order dated 12.07.2012, they have allowed the assessee (appellant) a credit of Rs.88,20,712/- u/s 115JAA out of gross tax payable computed at Rs.23,04,52,425/-. Both the amounts of gross tax payable and credit u/s 115JAA as computed by the CPC, Bangalore was same as claimed by th....
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....g MAT credit. It is pertinent to mention that this issue has not been discussed in the assessment order. However, the same has been raised before the Ld. CIT(A). The claim of the assessee is that is that MAT credit should first be reduced from the tax payable and thereafter on the residual amount the surcharge and education cess be levied. It is relevant to note that in the income tax Return from ITR-6, column no.4, the assessee is required to fill the credit u/s 115JAA of tax paid in earlier years and after which on the balance tax payable, the assessee has to fill the surcharge and educational cess at column no.8 and 10 for the purpose of arriving at the gross tax liability. Also, the ITAT in the case of Richa Global (P) Ltd Vs ACIT in IT....
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....of the credit u/s 115JAA is to be arrived in column 5 and then surcharge has to be computed on the amount mentioned in column 5 (tax payable after credit u/s 115JAA) and thereafter, the education cess including secondary and higher education cess is to be computed on the amount in column 5 and column 6 and then the gross tax liability of the assessee has to be arrived in column 8 including the tax payable after credit u/s 115JAA mentioned in column 5 plus surcharge mentioned in column 6 and education cess mentioned in column 7. Looking to the above method of computation of tax payable by the assessee as provided in ITR-6 for AY 2011-12, it is very much clear that the surcharge and education cess is to be levied after reducing the MAT credit....