TaxTMI 
TaxTMI 
2017 (12) TMI 786
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.....01.2012 by the Centralized Processing Center, Income Tax Department, Post Bag No. 2, Electronic City, Post Office, Bangalore- 560100. 2. The only issue to be decided in this appeal is as to whether the Ld. CIT(A) was justified in not granting the credit for surcharge and cess while computing the tax credit u/s 115JAA of the Act, in the facts and circumstances of the case. 3. The brief facts of this issue is that the assessee is a private limited company and had electronically filed its return of income for the assessment year 2011-12 disclosing total income of Rs. 1,41,26,460/-. The assessee computed the tax liability at Rs. 46,92,789/- including surcharge and cess under the normal provisions of the Act. 3.1 The assessee computed the bo....
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.... Court in the case of CIT vs. K. Srinivasan reported in 83 ITR 346 (SC) among other decisions. The Ld. CIT(A) however was not convinced with the argument of the assessee and upheld the demand raised by the CPC in the intimation u/s 143(1) of the Act by observing as under: "4. Decision I have carefully gone through the submissions made by the AR of the assessee. However, I am not convinced with the arguments. The rate at which income tax is to be calculated is given in Part III which says that in the case of the company, same is to be calculated @ 30%. The surcharge and the education cess are separately mentioned there, which are to be levied over and above the income tax calculated at the rate given above, Section 2(43) of the Act defi....
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....ch tax calculation is not possible u/s 143(1) is also without any basis. The controversy being cited by the assessee in calculation of the tax credit is of his own creation and because of twisting the interpretation of otherwise straight meaning of Section 115JAA. Thus, this contention of the assessee is rejected. In the result, the appeal of the assessee is dismissed." 6. Aggrieved, the assessee is in appeal before us on the following grounds: 1. For that in the facts and circumstances of the case Appellate order passed was in violation of principles of natural justice hence is unjustified, unwarranted and uncalled for. 2. For that in the facts and circumstances of the case the adjustment made in the Intimation u/s 143(1) of the I.T....
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....se of CIT vs. K. Srinivasan (supra) observed that tax includes surcharge and cess and accordingly for computing the MAT credit u/s 115JAA of the Act, both surcharge and cess should be taken into account. In response to this, the Ld. DR vehemently relied on the decision of the Delhi Tribunal by the Ld. CIT(A). 8. We have heard the rival submissions. The facts stated hereinabove remain undisputed and hence the same are not reiterated for the sake of brevity. We find that the issue under dispute has been addressed against the assessee by the decision of Delhi Tribunal in the case of Richa Global Exports Pvt. Ltd. reported in 25 taxmann. com 1 (Del). We find that the issue under dispute is covered in favour of the assessee by the Co-ordinate B....
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.... section 90 on account of tax paid in a country outside India; (iii) Any relief of tax allowed under section 90A on account of tax paid in a specified territory outside India referred to in that section; (iv) Any deduction, from the Indian income tax payable, allowed under section 91, on account of tax paid in a country outside India; and (v) Any tax credit allowed to be set of in accordance with the provisions of section 115JAA [or section 115JD]." From the aforesaid provisions it could be inferred that the legislature wanted to treat the payment of entire taxes (including surcharge and cess) eligible for MAT credit u/s 115JAA while calculating the interest on 'assessed tax' u/s 234B of the Act, meaning thereby, the assessed tax....