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TMI Blog2022 (1) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 raised by the assesee before the Ld.CIT(A) are as under:- "GROUND NO I.- INCORRECT COMPUTATION OF ALL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (Hyderabad- Trib.) wherein it was held that where assessee had relied on ITR-6 format to arrive at total liability as well as MAT credit calculations, the Assessing Officer could not overlook said format and proceed to calculate MAT credit to complete asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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., v. ACIT [167 ITD 645] (vi). SI Group India Pvt. Ltd., v. DCIT in ITA.No. 2348 & 2350/Mum/2017 dated 11.10.2018. (vii). M/s. Savita Oil Technologies Ltd., v. ACIT in ITA.No. 3066/Mum/2015 dated 07.02.2017. 4. In the case of Srei infrastructure Finance Ltd., v. DCIT (supra) the Hon'ble Calcutta High Court held that MAT credit u/s. 115JAA of the Act brought forward from earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 well as availability of credit available u/s 115JAA. It is noted that it was held by the Hon'ble Allahabad High Court in the case of CIT vs Vacment India, (supra) that methodology of computation of tax liability and granting credit of MAT should be similar to the methodology provided in the prescribed form of filing of income-tax return i.e. ITR-6. But subsequently, Hon'ble Calcutta High Court in the case of M/s Srei Infrastructure Finance Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 facts as have been given in the aforesaid working and compute the tax liability accordingly and allow the necessary relief to the assessee." 9. We further observe that the decision of Coordinate Bench of the Tribunal in the case of SI Group India Pvt. Ltd., v. DCIT (supra) is emanating from the order passed by the Assessing Officer u/s. 154/143(1) of the Act. 10. On a perusal of the order of the Ld.CIT(A) we noticed that Ld.CIT(A) denied claim of the assessee for the reason that there is a contrary view taken by the Delhi Tribunal in the case of Richa Global [54 SOT 185] and therefore the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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