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2021 (6) TMI 58 - AT - Income TaxAllowance of MAT credit u/s. 115JAA (2A) exclusive on surcharge and education cess resulting in short credit - HELD THAT:- In the case of Srei Infrastructure Finance Ltd. Vs. DCIT, Circle-11(2), Kolkata [2016 (8) TMI 967 - CALCUTTA HIGH COURT] has held that MAT credit u/s. 115JA had to be allowed before making addition of surcharge and cess and MAT credit u/s. 115JA brought forward from earlier years is to be set off against tax on total income after taking into account amount of surcharge and cess. ITAT Kolkata in the case of Bhagwati Oxygan Ltd. vs. ACIT [2017 (12) TMI 786 - ITAT KOLKATA] held that payment of entire tax including surcharge and cess eligible for MAT credit u/s. 115JB of the Act. It is also observed that assessee has not debited surcharge and cess in the profit and loss account. In the light of the above facts and findings of the various judicial pronouncements as cited supra in this order, we consider that ld. CIT(A) is not justified in disallowing the claim of MAT credit of the assessee pertaining to the surcharge and cess which was already paid by the assessee as part of book profit u/s. 115JB(A) of the Act. Accordingly, this appeal of the assessee is allowed.
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