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TMI Blog2018 (7) TMI 1722X X X X Extracts X X X X X X X X Extracts X X X X ..... that the amount of interest under the Act is liable to be paid on the amount of tax payable determined after deducting, inter alia, the amount of MAT tax credit. We, therefore, hold that the amount of the MAT tax credit, inclusive of surcharge and education cess etc., if any, should be reduced from the amount of tax determined on the total income after adding surcharge and education cess, etc. Only the resultant amount payable will suffer interest under the relevant provisions of the Act. Since the amount of MAT tax credit is uncertain, we set aside the impugned order and remit the matter to the file of the AO for ascertaining the correct amount of MAT tax credit available with the assessee inclusive of surcharge and education cess etc., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the remaining amount of tax of ₹ 1,90,26,590/- with surcharge and education cess. The Assessing Officer processed the return u/s 143(1) of the Income-tax Act, 1961 (hereinafter also called the Act ). He also computed total income and tax on such total income at ₹ 11.62 crore and ₹ 2.96 crore respectively, being the same amounts as were determined/worked out by the assessee. The dispute concerns only on the stage of reduction of MAT credit claimed by the assessee at ₹ 1.05 crore as against the Assessing Officer allowing such credit of ₹ 95,53,680/- immediately after the calculation of tax payable for the year at ₹ 2.96 crore in the computation made u/s 143(1) of the Act, that is before the levy of surch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is entitled to tax credit of ₹ 11/- (Rs.121/- minus ₹ 110/-) in subsequent years. The amount of tax credit of ₹ 11 has two components, viz., tax of ₹ 10 and surcharge etc. of ₹ 1. The parallel of the tax credit of ₹ 11 in the hypothetical situation is ₹ 1.05 crore in the instant case, which as per the assessee has tax component of ₹ 95.83 lac and surcharge and cess etc. at ₹ 10.25 lac. The ld. AR could not place on record the veracity of such two figures and on a pointed query frankly agreed that the same can be examined by the AO. 5. We revert to the main question as to the stage at which deduction should be allowed for the tax credit. The ld. AR submitted that the tax c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd constitutes part and parcel of the amount of tax. In the same manner, when we talk of allowing credit for tax available u/s 115JAA in subsequent years, which also includes the amount of surcharge etc., the same ought to be allowed in total from the amount of tax computed after loading it with the amount of surcharge or education cess. If we split the amount of tax credit into two artificial limbs, that is, tax and surcharge etc., there can be a possibility of an assessee even losing the benefit of the full amount of surcharge etc. as the amount of surcharge etc. keeps on varying from year to year. To illustrate, if the rate of surcharge etc. in the year of earning tax credit is say, 10%, but when the turn comes of claiming credit, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 90 or section 91 on account of tax paid in a country outside India; ( iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and ( v) any tax credit claimed to be set off in accordance with the provisions of section 115JAA or section 115JD, the assessee shall be liable to pay such tax together with interest and fee payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest. 8. A careful circumspection of the above provision deciphers certain things. Firs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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