2019 (4) TMI 1152

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....id order stating that submissions made by the assessee on 12th July, 2017 have not been considered. The submission referred by the ld. counsel is reproduced as under:- "1.6 Without prejudice to the above, we would like to point out to your Honors that Income Tax and surcharge are separate charges and wherever the rate of Income Tax is to be inclusive of surcharge, a specific mention has been made in the relevant provisions. For e.g. as under:- In the definition of maximum marginal rate given in Section 2(29)(C) of the Act, the maximum marginal rate is defined as under:- (29.C] "maximum marginal rate" means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the highest \ slab of inc....

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....d education cess. 2. During the course of appellate proceedings the Ld. Counsel has made the similar submission as stated above. On the other hand, ld. departmental representative has vehemently contended that ITAT has passed detailed speaking order after hearing both the sides holding that amount of surcharge and cess have to be taken in to account before providing MAT credit u/s 115JAA of the act. 3. We have heard both the sides and perused the material on record carefully. In this connection, we find that vide above stated order of ITAT 1740/Ahd/2014 the impugned issue has been adjudicated by taking in to consideration the submissions filed by the assessee and the revenue, legal findings and relevant provision of law. The relevant ....

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....arge and cess on the taxable income of the assessee. We have noticed that the tax on the total income of the assessee for the assessment year under consideration is determined at Rs. 25,46,74,428/- as against the same the assessee claimed that the same should be determined at Rs. 19,47,11,533/- on the ground that MAT credit to be provided before charging of surcharge and education cess. We are of the view that there is no provision in the act which provide this kind of special incentive of Rs. 5,99,62,895/- in the cases wherein the assesee has paid MAT in the preceding years. We find that the MAT credit u/s. 115JAA is only a tax credit which shall be allowed to be set off in a year when tax become payable on the total income computed in sub....