2016 (2) TMI 1203

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....has raised only one substantive ground that the Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to allow MAT credit u/s.115JAA of the Act and also that the Surcharge and Education cess included in the MAT credit. 3. The Brief facts of the case are that the assessee company filed return of income electronically on 29.11.2013 admitting total income of =53,27,57,210/- under the normal provisions of computation of income and under provisions of Sec.115JB of the Act =55,30,38,040/-. Since, the tax liability under normal provisions was higher than Sec.115JB and calculated tax =17,28,53,077/- and claimed set off of MAT credit of =6,22,02,608/- including surcharge and education cess of earlier assessment years calcula....

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....r of Income Tax (Appeals) on the issue of dispute relied on the order of ITAT, Mumbai Bench in the case of Universal Medicare P. Ltd vs ACIT(LTU) in ITA No.839/MUM/2012, Dated. 24.07.2013. referred at page No.13 of Commissioner of Income Tax (Appeals) order as under:- ''In view of that matter, we find merits in the contention of the assessee that MAT credit should first be reduced from the tax payable and thereafter on the residual amount the surcharge and educational cess be levied''. Therefore, the Assessing Officer is directed to allow MAT credit to the appellant''. Further, the Commissioner of Income Tax (Appeals) directed the Assessing Officer to allow setoff of MAT credit and allowed the grounds of the assessee. Aggrieved by the or....

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....ief was granted. Before us, the ld. Departmental Representative relied on the findings of the Assessing Officer and argued to set aside the appeal. In reply, the ld. Authorised Representative relied on the decision of ITAT, Mumbai Bench Wyeth Limited vs. ACIT in ITA No.6682/Mum/2011, Dated 09.01.2015 which has endorsed the provisions of allowing MAT credit observed at page 4 in para 5 as under:- ''5. Thus it is clear that the Hon'ble High Court has taken into account the order of entries in the form ITR-6 for the A.Y. 2011-12 in the said case and held that as per form ITR-6, the MAT credit has to be given against the gross tax payable exclusive of surcharge /cess and only after the MAT credit tax liability, the surcharge and cess has to b....