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2017 (5) TMI 1722 - AT - Income TaxMAT credit Computation - method of computation of tax liability - allowing the surcharge and cess for the purpose of MAT credit - whether Surcharges and education cess are not part of MAT credit? - HELD THAT:- As decided in M/S. VACMENT INDIA AGRA [2014 (10) TMI 787 - ALLAHABAD HIGH COURT] Entry 3 requires computation of the gross tax payable. Under entry 4, credit is required to be given under section 115JAA of the Act of the tax paid in earlier years. Entry 5 requires a computation of the tax payable after credit under section 115JAA of the Act. The matter is placed beyond doubt by the parenthesis, which indicates that tax payable under entry 5 is to be arrived at by deducting the credit under section 115JAA of the Act (under entry 3) from the gross tax payable (under entry 4). The surcharge is computed on the amount reflected in entry 5. The Tribunal has noted that from the next assessment year, the assessment year 2012-13, the position was materially altered but, in the present case, since the dispute related to the assessment year 2011-12, the method of computation, as directed by the Commissioner (Appeals), was plainly in accordance with the methodology as provided in ITR-6. The Tribunal in confirming the order of the Commissioner (Appeals) has, hence, not committed any error. Also see M/S VIRTUSA (INDIA) PVT. LTD. VERSUS DCIT, CIRCLE – 17 (2) , HYDERABAD [2016 (3) TMI 245 - ITAT HYDERABAD] 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. - Decided against revenue
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