2018 (7) TMI 1722

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....f the Income Tax Act 1961 since MAT credit allowed by revenue, while processing the return u/s 143(1), is not in accordance with law. Even if tax component only is to be allowed as MAT credit, it should have been allowed against the tax component only determined as per normal procedure and then ought to have computed the surcharge and cess as well as interest on the balance amount." 3. Briefly stated, the facts of the case are that the assessee filed its return declaring total income of Rs. 11,26,58,993/-. In the calculation of amount of tax, the assessee reduced MAT credit of Rs. 1,05,78,311/- available u/s 115JAA from the amount of tax for the year under consideration, determined at Rs. 2,96,04,901/-. Thereafter, the assessee loaded the....

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....ax so paid shall be allowed to him in accordance with the provisions of this section. Sub-section (2A) further mandates that: "The tax credit to be allowed under sub-section (1A) shall be the difference of the tax paid for any assessment year under sub-section (1) of section 115JB and the amount of tax payable by the assessee on its total income computed in accordance with the other provision of the Act." To put it simply, the prescription of section 115JAA(2A) is that if the amount of tax under the regular provisions is, say, Rs. 110/- (tax of Rs. 100 and surcharge and cess etc. at Rs. 10) and u/s 115JB(1) it is Rs. 121/- (tax of Rs. 110 and surcharge and cess etc. at Rs. 11), the assessee is entitled to tax credit of Rs. 11/- (Rs.121/- mi....

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....and also the surcharge and cess etc. are provided in the respective Finance Acts. Such rates vary from the year to year or from class of assesses even for the same year. When we talk of tax on total income for a year (other than interest payable under the provisions Act), it refers not only to the amount of income-tax but also the surcharge and education cess etc. as is applicable on it. Distinct from interest payable under the Act, tax includes both the components, namely, tax on one hand and surcharge etc. on the other. One cannot see surcharge etc. as distinct from the amount of income tax, which is an integral component and constitutes part and parcel of the amount of tax. In the same manner, when we talk of allowing credit for tax avai....

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.... from the language of section 140A of the Act dealing with 'Self assessment'. Subsection (1) of section 140A provides as under : Self-assessment. 140A. (1) Where any tax is payable on the basis of any return required to be furnished under section 115WD or section 115WH or section 139 or section 142 or section 148 or section 153A or, as the case may be, section 158BC, after taking into account,- (i) the amount of tax, if any, already paid under any provision of this Act; (ii) any tax deducted or collected at source; (iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India; (iv) any relief of tax claimed under section 90A on account of tax paid in any....