AI Drafter 
TaxTMI 
TaxTMI 
2016 (11) TMI 1663
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....peal:- Based on the facts and circumstances of the case, the Appellant respectfully submits that the learned CIT(A) has erred on the following grounds, which are independent of and without prejudice to each other: 1. The learned CIT(A) erred in upholding the action of the Assessing Officer of determining the refund of Rs. 15,69,210 as against a refund of Rs. 26,91,070 claimed by the Appellant in its return of income. The Appellant prays that the refund of Rs. 26,91,070, as claimed in the return of income be granted to the Appellant. 2. The learned CIT(A) erred in upholding the action of the Assessing Officer of levying surcharge and education cess on entire tax liability under normal provision of the Income Tax Ac....
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....neering related work mainly for building and infrastructure development projects with the use of computers, etc. The assessee had furnished the return of income declaring total income of Rs. 9,95,86,210/- which was processed under section 143(1) of the Act and demand of Rs. 1,45,82,460/- was raised. The assessee noted that in the Intimation issued under section 143(1) of the Act, MAT credit claimed by the assessee in its return of income of Rs. 1.48 crores was not allowed by the ACIT. Further, there was short credit of TDS of Rs. 1,840/- resulting in demand of Rs. 1,45,82,460/-. The assessee filed an appeal before the CIT(A) against the Intimation issued under section 143(1) of the Act. Simultaneously, an application for rectification under....
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....sessing Officer is that the MAT credit has to be considered excluding surcharge and Education Cess. Sections 115JB(1) and 115JB(2) provide that book profit shall be deemed to be total income of the assessee and tax payable by the assessee on such total income shall be the amount of income tax at specified rate of tax. The tax defined under section 2(43) means only income-tax and does not include surcharge and Education Cess. Surcharge and Education Cess are levied under the Finance Act and not under the Income-tax Act. Even though, the surcharge may be described as a part of Income-tax, yet it is treated differently as a separate category and levied according to the Finance Act. Wherever the intention of the legislature is to include surcha....
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.... of income tax and not of surcharge and Education Cess. In view of this legal position, tax credit u/s 115JAA does not include surcharge and Education Cess and in the rectification order read with intimation under sec.143(1), credit under sec.115JAA was correctly allowed after excluding Surcharge and Education Cess." 7. The assessee is in appeal against the order of CIT(A) and is aggrieved by short allowance of credit on account of MAT credit i.e. restriction in the quantum of refund to be issued to the assessee at Rs. 15,69,207/- as against the claim of Rs. 26,91,070/-. 8. The learned Authorized Representative for the assessee pointed out that the CIT(A) had denied the claim on the ground that section 115JAA of the Act does not inclu....
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....that MAT payable under section 115JAA of the Act was only income tax and it does not include Surcharge or Education Cess. In this regard, reliance was placed on the ratio laid down by Delhi Bench of Tribunal in Richa Global Exports Pvt. Ltd. Vs. ACIT (supra). Similar issue of allowance of tax credit for tax paid on deemed income i.e. computation of eligible MAT credit arose before the Hyderabad Bench of Tribunal in Virtusa (India) (P) Ltd. Vs. DCIT (2016) 157 ITD 1160 (Hyd). The Hyderabad Bench of Tribunal held that the tax liabilities for normal provisions as well as MAT to be calculated with Surcharge and Education Cess and the assessee was entitled to total MAT credit adjustments i.e. against taxes and Surcharge and Cess. In this regard,....
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.... "9.5 Let us also analyse the case law of Richa Global Exports Pvt. Ltd. which 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 education 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 ITAT, 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. ....