2017 (2) TMI 1482

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....er of Income-tax (Appeals)-50 has grossly erred in confirming the working of tax payable done by the Assessing Off icer by wrongly al lowing the credit of tax paid u/s 115JAA after charging surcharge and Education cess, whereas the same should have been done before the said charges in accordance wi th the method of computat ion provided in the ITR-6 for the assessment year under reference. The working of tax payable as done by the appel lant , being in conformi ty wi th the method of computation prescribed in the relevant form for the same, should have been allowed as such." 2. The solitary issue raised by the assessee before us is that while granting MAT credit available u/s 115JAA of tax paid as per the provisions of MAT in earlier yea....

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....been called upon to decide in this case the correct manner of computing tax liability and also amount of credit available u/s 115JA keeping in view levy of surcharge and education cess in the process. We have examined the entire scheme of the Act containing provisions with regard to payment of MAT u/s 115JB as well as availability of credit available u/s 115JAA. It is noted that it was held by the Hon'ble Allahabad High Court in the case of CIT vs Vacment India, (supra) that methodology of computation of tax liability and granting credit of MAT should be similar to the methodology provided in the prescribed form of filing of income-tax return i.e. ITR-6. But subsequently, Hon'ble Calcutta High Court in the case of M/s Srei Infrastructure Fi....

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.... -       c Tax payable on total income     Rs. 327,839,585 3   Surcharge on 2c     Rs. 32,783,959 4   Education cess on (2c+3)     Rs. 10,818,706 5   Credit under section 115JAA of tax paid in earlier years           a Income-tax Rs. 25,976,115       b Surcharge Rs. 2,597,612       c Education Cess on (5a + 5b) Rs. 857,212 Rs. 29,430,939     Tax payable after credit under section 115JAA     Rs. 342,011,311 During the course of hearin....