TMI Blog2012 (9) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... rcharge and education cess - against assessee. Interest u/s 234B & 234C - Held that:- As it is a mandatory provision and is consequential in nature and in view of our adjudication on ground 1 as decided against the assessee - IT Appeal No. 2303 (Delhi) of 2012 - - - Dated:- 31-8-2012 - I.C. SUDHIR, T.S. KAPOOR, JJ. ORDER T.S. Kapoor, Accountant Member This is an appeal filed by the assessee against the order of Ld CIT(A) dated 27.2.2012. The grounds raised by the assessee are as under:- 1. That on the facts and circumstances of the case, the Ld CIT(A) has grossly erred: ( a ) In allowing credit of MAT of the previous year u/s 115JAA at Rs. 56,05,585/-. (Pl. see Sl. No.22 of Intimation) only as against the sum of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld CIT(A) has erred in not accepting the assessee's submission that tax has been defined in sec. 2(43) where tax means income tax and the same should be read with further definition of income tax given in Explanation-2 of sec. 115JB in Chapter XIIB and as such committed a mistake in not allowing the relief for surcharge and education cess while computing the tax for the year under appeal. 3. Appellant craves to add, file, modify and other ground before or at the time of hearing of appeal. 2. The brief facts of the case are that the assessee filed return electronically and received intimation order u/s 143(1) dated 15.3.2001 from ACIT, CPC, Bangalore. The assessee observed from the intimation that in allowing credit of MAT of previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a separate levy. The Ld CIT(A) after considering the submissions made by the assessee did not agree with the assessee. The relevant portion of Ld CIT(A)'s order is reproduced below:- "I have carefully considered the intimation u/s 143(1) and the submissions made by the appellant. The provisions of section 115JAA deals with allowability of tax credit in respect of tax paid on deemed income relating to certain companies. The section allows only credit of tax paid by the company in accordance with the provisions of section 115JAA. Tax has been defined in section 2(43) to be income tax chargeable under the provisions of the Act and surcharge and education cess have not been included in the definition of tax. Wherever the legislature want ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n NEC Ltd. at 330 ITR 226. 6. On the other hand, Ld DR argued that this intimation is not manual and is an automatic from CPC wherein the calculations are done automatically through software. She further argued that section 115JAA section 115JB talks of only income tax and no where surcharge and education tax is included for the purpose of these sections. Therefore, she argued that Ld CIT(A) has rightly rejected the appeal of the assessee. 7. We have heard the rival submissions of both the parties and have gone through the material available on record. For understanding the amount of tax credit available u/s 115JAA first of all, it is necessary to understand the meaning of income tax as contemplated by section 115JB of the Act. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with return of income where MAT is applicable at point 14 it states that the amount of income tax payable by the company would be 15% of col. 12 i.e. book profits, it does not state surcharge or education cess. Therefore, it emerges that MAT payable u/s 115JB is only income tax and does not include surcharge or education cess. Therefore, if only income tax is paid under the provisions of section 115JB it is natural that tax credit u/s 115JAA will only be of income tax and not of surcharge and education cess. This point is further clarified by intimation u/s 143(1) sent to assessee wherein tax payable u/s 115JB has been calculated as only income tax and no surcharge or education cess has been included in the amount of income tax. 8. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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