TMI Blog2014 (5) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... amount as per rule 8D Decided in favour of Assessee. Surcharge and education cess to be levied after giving MAT credit or before giving the credit Held that:- The claim of the assessee is that MAT credit should first be reduced from the tax payable and thereafter on the residual amount the surcharge and educational cess be levied - there was merit in the contention of the assessee that MAT credit should first be reduced from the tax payable and thereafter on the residual amount the surcharge and educational cess be levied What is required is that in the year when such credit is given, education cess and surcharge should be computed after giving credit of MAT to the tax computed on the assessed income in the same way as in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment framed u/s 143(3), the AO made the disallowance of Rs.48,66,304/- by invoking section 14A read with Rule 8D. 2.2 On appeal, the Ld.CIT(A) while upholding the disallowance made by the AO, has directed the AO that for carrying out the working of disallowance, the AO shall take expenditure directly attributable to the income and disallow u/s 14A. In addition, for making the disallowance of interest, the AO shall find out the ratio of average value of investment in shares and mutual fund to the average of total assets as per Balance sheet and apply this ratio to the interest debited to the P L account. Further, AO shall also disallow 0.5% of the average value of investment in shares and mutual fund exempt, being administrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djusting MAT credit. It is pertinent to mention that this issue has not been discussed in the assessment order. However, the same has been raised before the Ld.CIT(A). The claim of the assessee is that MAT credit should first be reduced from the tax payable and thereafter on the residual amount the surcharge and educational cess be levied. It is relevant to note that in the Income Tax Return form- ITR-6, column no. 4, the assessee is required to fill the credit u/s 115JAA of tax paid in earlier years and after which on the balance tax payable, the assessee has to fill the surcharge and educational cess at column no. 8 and 10 for the purpose of arriving at the gross tax liability. Also, the ITAT in the case of Richa Global Exports (P) Ltd V ..... X X X X Extracts X X X X X X X X Extracts X X X X
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