AI Drafter 
TaxTMI 
TaxTMI 
2017 (5) TMI 1722
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.... 1 The Order of the Commissioner of Income Tax (Appeals) is contrary to the law and facts of the case. 2.1. The CIT(A) erred in allowing the surcharge and cess also for the purpose of MAT credit. 2.2. The CIT(A) ought to have appreciated the decision of the Hon'ble ITAT in the case of Richa Global Exports (P.) Ltd. 25 taxmann.com 1 (Delhi) [2012) wherein it was held that Surcharges and education cess are not part of MAT credit. 2.3. He relied upon decision of the Hon'ble Allahbad High court in the case of Vacment India is distinguishable from that of the case on hand. 3. We have heard both the parties and perused the material on record. The issue in dispute for assessment year 2011-12 came before Allahaba....
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....essment year 2012-13, the position was materially altered but, in the present case, since the dispute related to the assessment year 2011-12, the method of computation, as directed by the Commissioner (Appeals), was plainly in accordance with the methodology as provided in ITR-6. The Tribunal in confirming the order of the Commissioner (Appeals) has, hence, not committed any error. The appeal will not give rise to any substantial question of law and is, accordingly, dismissed." 3.1 Similar view was taken by Hyderabad Tribunal in ITA No.146/Hyd./2015 dated 04.03.2016 for assessment year 2012- 13 held as under:- "9. Considered the submissions of both the counsels and material facts on the record. The provisions of section 115JB in....
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....off in a year when the tax becomes payable on the total income computed under the regular provisions. However, no carry forward shall be allowed beyond the tenth assessment year immediately succeeding the M/s Virtusa (India) Pvt. Ltd. assessment year in which the tax credit becomes allowable. The set off in respect of the brought forward tax credit shall be allowed for any assessment year to the extent of the difference between the tax on the total income and the tax which would have been payable under section ii5JB for that assessment year. 9.2 In other words, MAT credit will be allowed only in that previous year in which tax payable on the total income as per normal provisions of the income tax Act is more than tax payable under ....
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....hedules. None of the columns in the Part 'B' are manually entered, these are auto fills, and the dates are extracted from Part "A". It is pertinent to analyse the total tax liability calculations designed by the CBDT for assessment year 2012-13. They are as below: "Part B - TTI Computation of tax liability on total income Tax Payable on deemed total Income under section 115JB (7 of id Total Tax Payable u/s 115JB (ia+ib+ic)MAT) id 0 2 Tax payable on total income COMPUTATION OF TAX LIABILITY 4 Educational Cess, including secondary and higher education cess on (2c + 3) 4o Credit under section 115JAA of tax paid in earlier years (if 5 is more than id) 8 Tax payable after credit under section 115JAA [(6 - 7)1 8 0 9 Tax relief 11 Interes....
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....ch was applied by CIT(A), the Delhi ITAT opined that section 115JAA applied only to income tax, not of income tax as increased by surcharge and e4ucation cess. We are of the view that the Apex court decision in the case of K.Srinivasan (supra) may not have been brought to the knowledge of the 1TAT, Delhi. Moreover, the explanation 2 of section 115JB is applicable to calculate tax liability u/s 115JB and the same explanation should also be applied for giving credit u/s 115JAA. The tax liabilities calculated u/s 115JB by applying the explanation 2, the tax liability so computed are remitted by the assessee and then the same was carried forward for future MAT credit. In our view, while calculating the MAT credit u/s 115JAA, the same explanatio....