2019 (3) TMI 1881 - AT - Income Tax

Inclusion of surcharge and education cess while computing MAT credit under Section 115JAA - HELD THAT - For assessment year 2012-13, an identical issue came before this Tribunal in the assessee's own case 2018 (11) TMI 1640 - ITAT CHENNAI wherein by placing reliance on the judgment of Apex Court in CIT v. K. Srinivasan 1971 (11) TMI 2 - SUPREME COURT found that the surcharge and education cess are part of income-tax. This Tribunal has also found that the CIT(Appeals) has directed the Assessing Officer to verify the MAT credit. Since the CIT(Appeals) has no power to direct the Assessing Officer to verify the claim of the assessee, this Tribunal in exercise of its jurisdictional power conferred under Section 254(1) of the Act, directed the Assessing Officer to verify the claim of the assessee and thereafter allow the claim with regard to MAT credit. In view of the order of this Tribunal for assessment year 2009-10, the Assessing Officer shall verify the claim of the assessee and thereafter allow the claim with regard to MAT credit as in the case of assessment year 2012-13. Appeal of the Revenue stands dismissed.

Summary

Issues: Inclusion of surcharge and education cess while computing MAT credit under Section 115JAA of the Income-tax Act, 1961.

Analysis:
1. Issue of Inclusion of Surcharge and Education Cess: The appeal was filed by the Revenue against the Order of the Learned Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13. The key issue for consideration was the inclusion of surcharge and education cess while computing MAT credit under Section 115JAA of the Income-tax Act, 1961. The Tribunal referred to a previous judgment in the assessee's own case for the same assessment year, where it was established that surcharge and education cess are part of income-tax. The Tribunal also noted that the CIT(Appeals) had directed the Assessing Officer to verify the MAT credit claim, which was beyond the CIT(Appeals) jurisdiction. Therefore, the Tribunal, under its jurisdictional power conferred by Section 254(1) of the Act, directed the Assessing Officer to verify the claim and subsequently allow the claim with regard to MAT credit.

2. Judgment and Dismissal of the Appeal: The Tribunal, based on the previous order for assessment year 2009-10 and the directions given, dismissed the appeal of the Revenue. The Tribunal's decision was pronounced in an open court in Chennai on 18th March 2019. The order highlighted the Tribunal's stance on the inclusion of surcharge and education cess in the computation of MAT credit, emphasizing the need for verification by the Assessing Officer and subsequent allowance based on the findings.

This detailed analysis of the judgment provides insights into the specific issue of including surcharge and education cess while computing MAT credit under the Income-tax Act, 1961. The Tribunal's decision was based on legal precedents and the proper exercise of jurisdictional powers to ensure accurate verification and allowance of the claim.