TMI Blog2014 (6) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... x payable and thereafter on the residual amount the surcharge and education cess be levied - In the income tax Return from 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 for the purpose of arriving at the gross tax liability there was no merit in the contention of the revenue Decided against Revenue. - ITA No. 93/Agra/2014 - - - Dated:- 22-5-2014 - Shri Bhavnesh Saini And Shri Pramod Kumar,JJ. For the Appellant : Shri Anirudh Kumar, CIT/DR For the Respondent : Shri Pankaj Gargh, Advocate ORDER Per Bhavnesh Saini, J.M.: This appeal by the Revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charge and education cess has applied the rate on the amount of gross tax payable at Rs.23,04,52,425/- and thus, an excess amount has been computed coming to Rs.10,92,766/- for which, a demand notice has been issued to the assessee (appellant) after processing of return u/s 143(1) and thereafter rejecting its application u/s 154. The assessee contended before the ld. CIT(A) that the surcharge and education cess on the tax payable has been calculated before allowing credit of tax paid in the earlier years u/s. 115JAA, which is apparently wrong and hence the AO has erred on facts as well as on law in rejecting the application u/s. 154 of the IT Act. It was briefly explained in the written submissions that the tax credit u/s. 115JAA should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also. In view of that matter, we find merits 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 education cess be levied. We order and direct accordingly. Ground No.6 is allowed . 3. The ld. CIT(A) considering the facts and submissions of the parties and considering the columns made in the Income Tax Return was of the view that tax credit u/s. 115JAA should be allowed first and thereafter surcharge and education cess should be charged as per column 5, 6 7 provided in the part relating to computation of tax liability of total income of ITR-6 and then gross tax liability of the assessee should be arrived at as provided in column No. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion has changed from AY 2012-13 onwards. From Assessment year 2012-13, surcharge and education cess is levied before giving the MAT credit. Since the assessment year under consideration is AY 2011-12, it is decided as per the AY 2011-12, it is decided as per the decision of the Hon ble ITAT Mumbai in case of Universal Medicare (P) Ltd, Mumbai vs ACIT Mumbai (supra), keeping in view the Form ITR-6 applicable for the AY 2011-12. Therefore, the AO is directed to compute the gross tax liability of the assessee (appellant) in accordance with the method of computation provided in ITR-6 for AY 2011-12 as discussed above and accordingly, the appeal of the assessee (appellant) has been allowed for statistical purposes for re-computation of tax liabi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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