TaxTMI 
TaxTMI 
2022 (1) TMI 677
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....redit u/s 115JAA of the Act without appreciating the fact that provisions of section 115JAA r.w.s 2(43) and section 4 of the Act requires such credit to be given against total tax liability (inclusive of surcharge and education cess) under normal provisions of the Act. 2. The Appellant prays that the direction of the CIT(A) be reversed, and the addition made be deleted. 3. Without prejudice to the above, if the surcharge and education cess has been excluded, then for the purposes of MAT Credit as computed by the AO has to be first set off against tax payable. GROUND NO. II: LEVY OF INTEREST U/S 234A, 234B AND 234C OF THE ACT WRONGLY COMPUTED 1. On facts and circumstances of the case and in law, the Hon'ble CIT(A) erred in upholding the action of the AO of computing additional interest under sections 234B and234CoftheAct. 2. The appellant prays that the AO be directed to recompute the interest. 4. An appeal was filed before Ld.CIT(A) against order passed under section 143(1 of the I.T.Act, 1961 for AY 2014-15 by the ACIT, CPC Bengaluru, vide communication Reference NO. CPC/C/1415/A6/1542732203 dated 10/03/2016. 5. The grounds ra....
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.... It was held that MAT Credit should first be reduced from the tax payable and thereafter on the residual amount, surcharge and cess be levied. * The aforesaid decision alternatively provides that amount of MA T credit should also include surcharge and education cess for the purpose of allowing credit against tax liability inclusive of surcharge and education cess. It was further provided that MA T as well as normal tax before allowing MAT credit has to be taken on parity. The Parity can be achieved by both excluding surcharge and education cess or by including it. * The Deputy Commissioner of Income-tax vs. M/s. Saint Gobain Gyproc India Limited (I.T.A No. 2122/Mds. /2015) wherein the aforesaid decision was considered and the appeal filed by the Revenue was accordingly dismissed. * Commissioner of Income-tax vs. Vacment India (2015) 55 taxman.com 314 (Allahbad) wherein it was held that the tax payable is to be arrived at by deducting credit under section 115JAA from gross tax payable and on the balance amount, surcharge and cess shall be computed. * Virtusa (India) (P.) Ltd. vs. Deputy Commissioner of Income-tax (2016) 67 taxman.com 65 (H....
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.... 1. SREI Infrastructure Finance Ltd. v. DCIT [(2017) 395 "ITR 291 (Calcutta High Court)] 2. ACIT v. Orient Bell Ltd. [ITA No.7534 of 201 7 (Delhi Tribunal) 3. 63 Moon Technologies Ltd. v. DCIT [ITA No.7550 of 2013 (Mumbai Tribunal 4. Consolidated Securities Ltd. v. ACIT [(2018) 172 ITD 163 (Delhi Tribunal) 5. Tata Motors Ltd. v. DCIT [ITA no.2397 of 2019 (Mumbai Tribunal) 10. Upon careful consideration, we may gainfully refer to the following decision of ITAT in Tata Motors Ltd. in ITA No.2397/Mum/2019, dated 25.06.2021. 3. We have heard rival submissions, perused the orders of the authorities below. The only issue to be decided is as to MAT credit granted u/s. 115JAA of the Act should be inclusive of surcharge and cess. This issue is decided in favour of the assessee in the following decisions: - (i). Srei infrastructure Finance Ltd., v. DCIT [395 ITR 291 (Calcutta)] (ii). M/s. Scope International Pvt. Ltd., (TCA No. 588 of 2019) dated 16.08.2019. (iii). Consolidated Securities Ltd., v. ACIT [172 ITD 163] (iv). Virtusa (India) (P.) Ltd., v. DCIT [157 ITD 1160] (v). Bhagwati Oxygen Ltd.,....
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....s. K. Srinivasan reported in 83 ITR 346 (SC) had held that tax includes surcharge and cess and accordingly the entire component of taxes including surcharge and cess shall have to be reckoned for calculating the MAT credit u/s 115JAA of the Act. We also find that the Hon'ble Apex Court had in the case referred to supra, had held that meaning of word 'surcharge' is nothing but an 'additional tax'. In our considered opinion, this understanding of surcharge and cess being included as part of the tax gets further sanctified by the amendment which has been brought in Section 234B of the Act in Explanation 1 Clause 5 while defining the expression 'assessed tax'." 8. In the case of M/s. Savita Oil Technologies Ltd., v. ACIT (supra) the Bombay Bench of the Tribunal held as under: "4. We have gone through the facts of this case. We have 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 we....
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....bsp; 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 hearing, the Ld. DR also fairly submitted that it would be a correct method of computing tax liability and credit available u/s 115JAA. It is noted from the above working that first of ITA NO. 2397/MUM/2019 (A.Y: 2014-15) M/s. Tata Motors Ltd., all tax amount has been computed on the total income of the assessee. Thereafter surcharge and education cess has been worked out upon the tax liability. Then, from the gross amount so arrived at, the amount of credit available u/s 115JB on account of income-tax, surcharge and education cess (all combined together) have been deducted and accordingly, net tax payable after setting off credit available u/s 115JB has been worked out. In our view, this is the correct method of computing tax liability as well as credit available u/s 115JAA. Accordingly, we direct the AO to verify the ....