TMI Blog2021 (7) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be said that it is a debatable issue. In the circumstances, respectfully following the above said decisions allowing the grounds of appeal of the assessee, we direct the Assessing Officer to allow set off of MAT credit inclusive of surcharge and education cess and recompute the tax payable by the assessee for the year under consideration. - Decided in favour of assessee. - ITA NO. 2397/MUM/2019 - - - Dated:- 25-6-2021 - Shri C.N. Prasad, Hon'ble Judicial Member And Shri M. Balaganesh, Hon'ble Accountant Member For the Assessee : Shri Nikhil Tiwari For the Department : Shri Sunil Deshpande ORDER PER C.N. PRASAD (JM) 1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals) 1, Mumbai [hereinafter in short Ld.CIT(A) ] dated 05.02.2019 for the A.Y: 2014-15. 2. Assessee in its appeal has raised following grounds: - 1. Computation of set-off of MAT credit u/s 115JAA of the Act excluding surcharge and cess resulting short grant of MAT credit of ₹ 21,70,98,794/- 1.1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in concludin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. Ltd., (supra) the Hon'ble Madras High Court considering the decision of the Hon'ble Supreme Court in the case of CIT v. K. Srinivasan [83 ITR 346] held that MAT credit has to be given including the amount of surcharge and education cess. 6. The Hyderabad Bench of the Tribunal in the case of Virtusa (India) (P.) Ltd., v. DCIT (supra) taking note of the decision of the Hon'ble Apex Court in the case of CIT v. K. Srinivasan (supra) wherein the Hon'ble Apex Court held that the word Income-tax would include surcharge and additional surcharge . The Tribunal held that the eligible MAT credit available to set off for the company during the captioned assessment year needs to be arrived at by comparing difference between the tax liability (inclusive of surcharge and cess) computed under normal provisions of the Act and the tax liability (inclusive of surcharge and cess) computed under the provisions of section 115JB of the Act. 7. In the case of Bhagwati Oxygen Ltd., v. ACIT (supra) the Kolkata bench of the Tribunal held as under: - 8. We have heard the rival submissions. The facts stated hereinabove remain undisputed and hence the same are not reiterat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is noted that Hon ble Calcutta High Court has held that for the purpose of section 115JB, surcharge and cess are part of income-tax payable in accordance with provisions of section 115JB. Therefore, when the tax is paid u/s 115JB along with surcharge and cess, then entire amount would be considered for carry forward of the credit available u/s 115JAA and accordingly the entire amount would be available for the benefit of set off in the subsequent years from the amount of gross tax payable by the assessee. During the course of hearing before us, Ld. Counsel submitted before us three types of work sheets wherein tax payable after setting off amount of credit available u/s 115JAA was worked out in three different methods. We find that the following working shows the appropriate method of computing tax liability and setting off amount of credit available u/s 115JAA:- COMPUTATION OF TAX LIABILITY ON TOTAL INCOME AS PER INCOMETAX ACT, 1961 1 Total Income Rs. 1,093,157,260 2 Tax Payable on total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 issue is debatable. We observed that this decision of the Delhi Bench of the Tribunal was rendered for A.Y. 2010-11. However, in the case on hand the assessment year involved is A.Y. 2014-15 and this decision of the Delhi Bench of the Tribunal is not applicable to the facts of the assessee s case for the reason that the Format of ITR-6 prior to A.Y. 2012-13 was designed in such a manner th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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