TaxTMI 
TaxTMI 
2020 (10) TMI 1155
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....Tax Appellate Tribunal, Madras, 'B' Bench ('the Tribunal' for brevity) Chennai in I.T.A.No.2549/Mds/2017 for the Assessment Year 2011-12. The appeal was admitted on 18.12.2018 on the following Substantial Questions of Law: "1. Whether the reasoning and finding of the Tribunal is right in confirming that MAT credit under Section 115JAA includes surcharge and education cess instead of excluding surcharge and education cess?" 2. We have heard M/s.R.Hemalatha, learned Senior Standing counsel for the appellant / Revenue and Mr.Venkatanarayanan, learned counsel for M/s.Subbaraya Aiyar Padmanabhan, appearing for the respondent / assessee. 3. Identical question was considered by us in the case of Principal Commissione....
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....nly about the issue relating to MAT credit not being given on surcharge and cess. 6. Before the CIT(A), the assessee contended that the tax liability discharged during the assessment year 2009-10 was based on Section 115JB of the Act, as the tax calculated under the MAT provisions was higher than the tax calculated as per normal provisions of income tax and that this resulted in a MAT credit to the extent the tax liability under the MAT provisions higher than the tax liability under normal tax provisions to be carried forward for adjustment during the subsequent assessment years. It was further contended that while calculating the MAT credit, the Assessing Officer considered only the tax amount without considering the surcharge and....
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....nd thereafter allow the claim with regard to MAT credit. Accordingly, the Tribunal declined to interfere with the order passed by the CIT(A). 10. The Revenue is before us contending that surcharge and cess should not be included and that the decision in the case of K.Srinivasan would not be applicable to the facts of this case. Thus, the argument advanced before us is that both the CIT(A) as well as the Tribunal ought not to have followed the decision in the case of K.Srinivasan, which was rendered in the context of Section 2 of the Act whereas Section 11JAA of the Act was inserted subsequently with retrospective effect from 01.4.1997. 11. Section 2(43) of the Act defines 'tax' in relation to the assessment year co....
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.... the special and the additional surcharge whenever provided which are also surcharges within the meaning of Article 271 of The Constitution. It was pointed out that the word 'surcharge' has been used to either increase the rates of income tax and super tax or to increase these taxes. It was also pointed out that according to Article 271, notwithstanding anything in Articles 269 and 270, the Parliament may, at any time, increase any of the duties or taxes referred to in those Articles by a surcharge for the purpose of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. The Hon'ble Supreme Court took note of the distinction made by the High Court in the case and held t....
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....sessment year 2012-13, relief has been granted to the assessee and there is nothing on record to show that the said order is either reversed or reopened. Hence, the substantial questions of law raised are answered against the Revenue. 17. Accordingly, the above tax case appeal is dismissed. No costs." 4. M/s.R.Hemalatha, learned Senior Standing counsel referred to a decision of the High Court of Calcutta in the case of Srei Infrastructure Finance Ltd. Vs. Deputy Commissioner of Income-tax, Circle-11(2), Kolkata, [2016] 72 taxmann.com 239 (Calcutta) 5. In the said decision it was held that the MAT Credit under Section 115 JAA has brought forward from the earlier orders is to be set off against tax on total income including sur....