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2015 (1) TMI 1446 - AT - Income TaxCalculation of credit of MAT u/s 115JAA - MAT credit deduction from the tax payable and Surcharge and Education Cess to be calculated thereon - HELD THAT:- As decided in WYETH LIMITED [2015 (1) TMI 1299 - ITAT MUMBAI] as relying on M/S. VACMENT INDIA AGRA [2014 (10) TMI 787 - ALLAHABAD HIGH COURT] as taken into account the order of entries in the form ITR-6 for the A.Y. 2011-12 in the said case and held that as per form ITR-6, the MAT credit has to be given against the gross tax payable exclusive of surcharge /cess and only after the MAT credit tax liability, the surcharge and cess has to be calculated for the purpose of working out the grand tax liability. Merit and substance in the alternative contention of the assessee that if the MAT credit is taken into account without including the surcharge and education cess then the surcharge and education cess on the tax liability has to be calculated only after allowing the MAT credit. Alternatively, the amount of MAT credit should also include surcharge and education cess for the purpose of allowing the credit against the tax liability inclusive of surcharge and education cess. MAT as well as normal tax before allowing the MAT credit has to be taken on parity either exclusion of surcharge and education cess or inclusive of surcharge and education cess or inclusive of surcharge and education cess - Direct the AO to allow the MAT credit against the tax liability payable before surcharge and education cess or alternatively the amount of MAT credit should also be inclusive of surcharge and education cess and then allow the credit against the tax payable inclusive of surcharge and education cess. - Decided against revenue
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