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2016 (5) TMI 1480 - AT - Income Tax'MAT' credit u/s 115JAA - AO restricted MAT credit to the extent of tax portion of earlier years and not allowed surcharge and educational cess - Held that:- In the current assessment year, the assessee company liable to pay income tax based on the normal computation of income, in such circumstances the assessee is eligible for MAT credit carried forwarded from earlier assessment years u/s.115JA of the Act. Under the provisions of Sec. 115JB tax components deemed to have included surcharge and educational cess. This view was considered by the Apex Court in the case of CIT vs. K. Srinivasan [1971 (11) TMI 2 - SUPREME COURT] were words "income-tax" in the Finance Act of 1964 in sub-sec(2)(a) and sub-se(2)(b) of Sec. 2 would include surcharge and additional surcharge. We respectfully following the Co-ordinate Bench decision on MAT tax credit u/s.115JAA of the Act and allow the grounds in favour of the assessee. Admission of fresh claim of deduction towards gratuity paid as same was not claimed in the original return of income - Held that:- AR to substantiate the genuiness of payment supported the grounds with copies of form no.16 issued by the assessee company as employer to employees and the breakup was reflected in the profit and loss account for the year ending 31.03.2011 under the schedules of personal expenses. The assessee filed extract of ICICI Bank statement in support of gratuity payments. Prime facie it is a clear case of mistake in not claiming deduction by the assessee company. Considering the provisions of law, subject to verification by the AO and we rely on the Apex Court decision CIT vs. Shelly Products and Another [2003 (5) TMI 4 - SUPREME COURT] - Considering the apparent facts, factual evidence, claim of deduction and decision of Apex Court, we remit the disputed issue to the file of Assessing Officer to verify and examine the genuiness of the claim and allow deduction and Assessing Officer shall provide adequate opportunity of being heard to assessee before passing the order - Appeal of the assessee is allowed for statistical purpose.
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