2019 (8) TMI 1761 - HC - Income Tax

Computation of set off of MAT credit u/s.115JAA - whether it should be excluding surcharge and cess or including surcharge and cess - HELD THAT - Judgment rendered by us in 2019 (7) TMI 185 - MADRAS HIGH COURT in the assessee's own case for the earlier assessment year has become final and the Revenue has not preferred any appeal. There is no material placed before this Court to show that the Revenue has filed an appeal before the Hon'ble Supreme Court against our judgment. Hence, we are inclined to follow the said decision in the assessee's own case for the earlier assessment year.- Decided in favour of assessee.

Summary

Issues:
1. Appeal filed by Revenue under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'D' Bench for the assessment year 2010-11.
2. Inclusion of surcharge and cess in MAT credit under Section 115JAA of the Income Tax Act.
3. Reliance on the decision of the Supreme Court in CIT Vs. K.Srinivasan regarding Section 115JAA of the Act.

Analysis:
The High Court heard the appeal filed by the Revenue against the order of the Income Tax Appellate Tribunal for the assessment year 2010-11. The substantial questions of law raised by the Revenue pertained to the inclusion of surcharge and cess in MAT credit under Section 115JAA of the Income Tax Act. The Court also considered whether the Appellate Tribunal was correct in relying on a Supreme Court decision related to a different section of the Act, which was inserted subsequently with retrospective effect from 01.4.1997.

The Court noted that the Revenue had previously filed an appeal in the assessee's case for the year 2009-10, which was dismissed by the Court in a prior judgment. The Senior Standing Counsel for the appellant referred to a decision of the Division Bench of the Calcutta High Court, which was not presented during the earlier appeal. However, the Court emphasized that the judgment in the assessee's previous case had become final as the Revenue did not appeal further, and no material indicated an appeal to the Supreme Court. Therefore, the Court decided to follow the previous decision in the assessee's case for the earlier assessment year.

Consequently, the Court dismissed the tax case appeal, answering the substantial questions of law against the Revenue. The judgment highlighted that no costs were awarded in this matter.