TaxTMI 
TaxTMI 
2021 (8) TMI 1065
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....sions viz Rs. 3,93,29,587/- as claimed by assessee in ITR instead of base tax as per normal income and book profit u/s 115JB viz. Rs. 3,40,92,915/- ignoring the direct decision of ITAT Delhi in the case of M/s Richa Global Exports Pvt Ltd, ITA No 2303/Del/2012 wherein it has been held that explanation 2 to section 115JB was inserted to define the meaning of tax for the purpose of calculating book profit liable to tax u/s 115JB and it cannot be extended to section 115JAA or section 115JB of the Act. 3. The assesses is engaged in the business of manufacturing, trading and selling of reputed brand of ceramic and floor tiles. The assessee filed its return of income (ROI) on i2,10.2016 declaring income of Rs, 19,82,36,800/. The ROI was process....
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.... extended to Section 115JAA or Section 115JB of the Act. Thus, the Ld. DR relied upon the assessment order. 6. The Ld. AR submitted that the only issue involved in this appeal is as to whether while allowing the tax credit under the MAT provisions, it is only Income Tax or it is Income Tax + Surcharge + Education Cess which are required to be taken into consideration. The facts in brief are that while processing the Income Tax Return by the CPC, Bengaluru u/s 143(1) of the Income Tax Act, tax credit for MAT provisions u/s 115JAA were allowed only towards the Income Tax Act excluding the amount of Surcharge and Education Cess and raised demands on assessee. Against such demand, the assessee filed an appeal before the CIT(A), who had allowed....
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....d/2015 had also similarly held that while allowing MAT credit u/s 115JAA, the amount of surcharge and education cess is required to be considered which is also as per ITR Form No. 6 and credit is required to be allowed for the gross tax amount. 2. The Delhi ITAT in the case of AMQ Agro India (P) Ltd. v. ACIT in its judgment dated 29.04.2016 in ITA No. 666/Del/2014 has similarly held and has concluded that while allowing MAT credit u/s 1 15JAA, surcharge and education cess are also required to be considered. 3. All such judgments have referred to and relied upon the judgment of Hon'ble Supreme Court in the case of K. Srinivasan v. CIT (83 ITR 346) which clarifies that the word "income tax" includes the amount of surcharge and cess wher....
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....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 1 15JAA. 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 explanation '2' in section 1 15JB must be applied." Similarly the CIT(A) has also relied upon the judgment of Hon'ble Calcutta High Court in the case of Srei Infrastructure Finance Ltd. (supra), which in turn referred to and relied upon a judgment of H....
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.... where two views or two possible interpretations of an issue is available, then a view favorable to the assessee is required to be adopted and followed. One of the prominent judgments on this proposition is available in the case of Manish Maheshwari v/s ACIT (289 ITR 341), where it has been held that where two views are possible, a view in favor of the taxpayer should be followed. Thus, even if it is held that view expressed by the ITAT in Richa Global Exports (P) Ltd. (supra) is a correct view, then also the alternate favorable view of Hon'ble ITAT in Virtusa (India) Pvt. Ltd. (supra) case, the Delhi ITAT's view in AMQ Agro India (P) Ltd. (supra) case and Hon'ble Calcutta's High Court view in Srei Infrastructure Finance Ltd. (supra) ma....