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2021 (1) TMI 634 - AT - Income TaxSet off of MAT credit u/s.115JAA - interest u/s.234C of the Act was also charged by the ld. AO for the deficit in tax - Difference in figure arose because of the fact the assessee computed the difference in tax payable under normal provisions of the Act and tax payable u/s.115JB after including surcharge and education cess to be part of the tax AND AO computed the same ignoring surcharge and education cess from the tax portion - HELD THAT:- Purpose of computation of MAT credit u/s.115JAA tax portion has to be inclusive of surcharge and education cess and accordingly, the computation made by the assessee in its return of income in respect of MAT credit is correct. We find that assessee being a company had filed its return of income in ITR-6 (i.e. prescribed form) under schedule for MAT credit (Schedule MATC), the assessee is precluded from filling up any figure as they are automatically picked from yet another schedule in the same ITR form i.e. 1d of Part-BTT1 and 5 of part-B-TT1, wherein the figures mentioned thereon, represent tax payable under normal provisions and u/s.115JB of the Act respectively, which is admittedly inclusive of surcharge and education cess. Hence, there is absolutely no scope for ignoring surcharge and education cess for the purpose of computing MAT credit u/s.115JAA of the Act. It is a well known fact that the ITR return form is a form prescribed by CBDT and the revenue is bound to follow the same. We find lot of force in the argument advanced by the ld. AR and accordingly, allow the grounds raised by the assessee. With regard to MAT credit u/s.115JAA and direct the ld. AO to accept the working given by the assessee as per the return of income. Charging of interest u/s.234C of the Act should always be on returned income and not on assessed income as it is a settled law. Accordingly grounds raised by the assessee allowed.
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