TMI Blog2015 (1) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... to be calculated for the purpose of working out the grand tax liability. Merit and substance in the alternative contention of the assessee that if the MAT credit is taken into account without including the surcharge and education cess then the surcharge and education cess on the tax liability has to be calculated only after allowing the MAT credit. Alternatively, the amount of MAT credit should also include surcharge and education cess for the purpose of allowing the credit against the tax liability inclusive of surcharge and education cess. MAT as well as normal tax before allowing the MAT credit has to be taken on parity either exclusion of surcharge and education cess or inclusive of surcharge and education cess or inclusive of sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usive of surcharge and cess and not the tax payable before the surcharge and cess. The assessee has relied upon the Judgment of Allahabad High Court in the case of CIT Vs. Vacment India (349 ITR 304) wherein the Hon ble High Court while considering the question of surcharge and education cess on tax payable has been calculated before allowing the credit of MAT u/s 115JAA held in para 5 to 7 as under:- 5. The only question which is raised pertains to the computation of tax in accordance with the modalities which are prescribed in the relevant form, ITR-6. IN so far as is material, the relevant entries in the form (Part B-TTI) are as follows: 3. Gross tax payable (enter higher of 2c and 1) 4. Credit under section 115JAA of tax paid i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Thus it is clear that the Hon ble High Court has taken into account the order of entries in the form ITR-6 for the A.Y. 2011-12 in the said case and held that as per form ITR-6, the MAT credit has to be given against the gross tax payable exclusive of surcharge /cess and only after the MAT credit tax liability, the surcharge and cess has to be calculated for the purpose of working out the grand tax liability. We also find merit and substance in the alternative contention of the assessee that if the MAT credit is taken into account without including the surcharge and education cess then the surcharge and education cess on the tax liability has to be calculated only after allowing the MAT credit. Alternatively, the amount of MAT credit sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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