TMI Blog2015 (1) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... able 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. We also find 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. Therefore, the MAT as well as normal tax before allowing the MAT credit has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed ACIT in arriving at the final tax liability ought to have granted MAT credit and ought to have levied the applicable surcharge and education cess on the balance tax after the deduction of the MAT credit. 3. The learned Commissioner of Income-tax (Appeals) erred in not accepting the appellant's alternative and without prejudice contention that if the learned ACIT provided the set off of MAT credit against the tax liability which is inclusive of surcharge and cess, then the MAT credit should also be correspondingly increased by surcharge and cess. Interest under section 244A 4. The learned Commissioner of Income-tax (Appeals) erred in not directing the learned ACIT to grant the interest short granted under section 244A o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of MAT credit, the tax liability has to be considered inclusive of surcharge and cess. He has relied upon the orders of authorities below. 4. Having considered the rival submissions as well as relevant material on record, we note that the authorities below held that the MAT credit is allowable against the tax liability inclusive of surcharge and cess and not the tax payable before the surcharge and cess. The assessee has relied upon the Judgment of Allahabad High Court in the case of CIT Vs. Vacment India (349 ITR 304) wherein the Hon ble High Court while considering the question of surcharge and education cess on tax payable has been calculated before allowing the credit of MAT u/s 115JAA held in para 5 to 7 as under:- 5. The only q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hod 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. The appeal-will not give rise' to any substantial question of law and is, accordingly, dismissed. 5. Thus it is clear that the Hon ble High Court has 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 ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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