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2022 (12) TMI 1323 - AT - Income TaxRectification of mistake u/s 154 - Difference of MAT credit not allowed to the assessee as related to surcharge and cess components of the MAT taxes paid in earlier years - AO had computed the MAT credit allowable to the assessee as per provision of section 115JAA(5) of the Act only considering the normal tax components and excluded surcharge and cess from the same - HELD THAT:- We have noted that the ld.CIT(A) dismissed the assessee’s appeal on the ground that there was no representation made by the assessee before him. Assessee has pointed out that on the last date of hearing, he did file written submissions to the ld.CIT(A). Be that so, we have noted the contentions of the ld.counsel for the assessee on merit also, and we find that rectification application filed by the assessee is to the effect that the assessee be allowed benefit of MAT credit as per section 115JAA(5) of the Act by including surcharge and cess in the tax credit so calculated. Precisely, this is the only issue on which the assessee has sought rectification of the intimation u/s 143(1) of the Act. We find merit in the contentions of the ld.counsel for the assessee. In a series of the decisions, the Hon’ble High Courts and the ITAT have held that the tax credit allowable under section 115JAA of the Act is including surcharge and cess components of tax thereon. Denial of tax credit u/s 115JAA of the Act to the extent of surcharge and cess components in the same, we agree with the ld.counsel for the assessee, is a mistake apparent from the record and rectification sought to this extent is therefore upheld. The rectification application filed by the assessee is therefore directed to be allowed, and adjustment of tax credit as claimed by the assessee is directed to be granted. The appeal of the assessee is allowed.
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