2018 (12) TMI 1254 - AT - Income Tax

MAT computation - payment of surcharge and education cess consideration for the purpose of MAT credit - Held that - As decided in assessee s own case for year 2012-13 CIT-A correctly directed the Assessing Officer to revise the MAT computation by including payment of surcharge and cess, we find no reason to interfere with the order passed by the ld. CIT(A). Thus, the ground raised by the Revenue stands dismissed.

Summary

Issues:
- Whether the Assessing Officer correctly granted MAT credit in the assessment year 2011-12.
- Whether the payment of surcharge and education cess should be considered for the purpose of MAT credit.
- Whether the decision of the Tribunal in a previous case for the assessment year 2012-13 should be followed.

Analysis:
1. The appeal by the Revenue challenged the order of the Commissioner of Income Tax (Appeals) regarding the MAT credit for the assessment year 2011-12. The main contention was the non-inclusion of payment of surcharge and education cess in the MAT credit calculation.

2. The Assessing Officer granted MAT credit of &8377;1,30,06,509/- instead of the claimed &8377;1,86,40,748/- by the assessee, citing the exclusion of surcharge and cess. The ld. CIT(A) directed the Assessing Officer to consider these payments for MAT credit based on the assessee's submissions.

3. The Tribunal referred to a previous case for the assessment year 2012-13 where a similar issue was addressed. The Tribunal observed that the MAT credit should include surcharge and cess, as per the decisions of the Coordinate Benches and the Hon'ble Supreme Court, emphasizing the need for parity in tax calculations.

4. The Revenue contended that the Tribunal's decision in the previous case was under appeal at the High Court, but the Tribunal upheld the ld. CIT(A)'s order, following the precedent set by previous judgments. The Tribunal dismissed the Revenue's appeal, stating that the MAT credit should be revised to include surcharge and cess as directed by the ld. CIT(A).

5. The Tribunal found no reason to interfere with the ld. CIT(A)'s decision, as it was consistent with legal precedents and the principles of tax liability calculation. The appeal filed by the Revenue was ultimately dismissed, upholding the inclusion of surcharge and education cess in the MAT credit computation.

6. The Tribunal's decision was based on established legal principles and previous judgments, ensuring consistency in tax calculations and upholding the assessee's right to claim MAT credit inclusive of surcharge and education cess. The appeal outcome favored the assessee, affirming the importance of following legal precedents in tax matters.