TMI Blog2016 (11) TMI 1663X X X X Extracts X X X X X X X X Extracts X X X X ..... is own method of calculating tax credit while making assessment u/s 143(1) of the Act.) proceed to calculate the MAT credit to compute assessment u/s 143(1) applying different methods when the proper and correct method as proposed by CBDT in ITR-6. The Assessing Officer is expected to follow the ITR-6 format to complete the assessment u/s 143(1) or 143(3) of the Act. Thus we hold that the assessee is entitled to MAT credit utilization of ₹ 1.48 crores i.e. MAT credit including surcharge and education cess. Accordingly, we direct the Assessing Officer to re-compute the refund in the hands of assessee. The grounds of appeal raised by the assessee are thus, allowed. - ITA No. 151/PN/2015 - - - Dated:- 30-11-2016 - MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM For the Appellant : Shri Rajendra Agiwal For the Respondent : Shri P.L. Kureel ORDER PER SUSHMA CHOWLA, JM: This appeal filed by the assessee is against the order of CIT(A)-I, Pune, dated 01.10.2014 relating to assessment year 2012-13 against Intimation issued under section 143(1) of the Income Tax Act, 1961 (in short the Act ). 2. The assessee has raised the following grounds of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income declaring total income of ₹ 9,95,86,210/- which was processed under section 143(1) of the Act and demand of ₹ 1,45,82,460/- was raised. The assessee noted that in the Intimation issued under section 143(1) of the Act, MAT credit claimed by the assessee in its return of income of ₹ 1.48 crores was not allowed by the ACIT. Further, there was short credit of TDS of ₹ 1,840/- resulting in demand of ₹ 1,45,82,460/-. The assessee filed an appeal before the CIT(A) against the Intimation issued under section 143(1) of the Act. Simultaneously, an application for rectification under section 154 of the Act was filed before the CIT(A), who passed an order under section 154 of the Act rectifying the demand of the assessee. As per the order under section 154 of the Act, MAT credit was given to the extent of ₹ 1.37 crores instead of ₹ 1.48 crores claimed by the assessee and credit was allowed for balance TDS of ₹ 1,840/-. The assessee received refund of ₹ 15,69,207/- as against refund of ₹ 26,91,070/-. 6. The assessee filed an appeal before the CIT(A) against the said order passed under section 154 of the Act. The CIT(A) took b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39; vis-a-vis 'export turnover' for the purpose of deduction under sec.10A 10B in the absence of definition of the term 'total turnover' in the said sections. The decisions rendered in these cases cannot be extended to the facts of the present case when the expression 'tax' was clearly defined in sec. 2(43) of the I.T. Act to mean only income-tax. In this context, reference can be made to the decision of ITAT Delhi in the case of Richa Global Exports Pvt. Ltd. vs. ACIT (25 Taxman.com 1), wherein it was categorically held that MAT payable under sec.115J8 is only income tax and does not include surcharge or Education cess and if only income tax is paid under the provisions of sec.115JB, it is natural that a tax credit under sec.115AA will only be of income tax and not of surcharge and Education Cess. In view of this legal position, tax credit u/s 115JAA does not include surcharge and Education Cess and in the rectification order read with intimation under sec.143(1), credit under sec.115JAA was correctly allowed after excluding Surcharge and Education Cess. 7. The assessee is in appeal against the order of CIT(A) and is aggrieved by short allowance of cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions as well as MAT to be calculated with Surcharge and Education Cess and the assessee was entitled to total MAT credit adjustments i.e. against taxes and Surcharge and Cess. In this regard, reference was made to sub-section (5) to section 115JAA of the Act i.e. for setting o ff in respect of brought forward tax credit and it was held that the term used tax included surcharge and it was held as under:- 9.6 The tax liabilities for normal provisions as well as MAT are calculated with surcharge and cess. The MAT credit in row 7 are calculated automatically using the prescribed algorithm, this is nothing but balancing figure i.e., the difference between tax liability as per normal provisions and MAT provisions. Both the above tax liabilities are calculated with surcharge and cess. These are the standard format, which are expected to be followed by all the assessees and also important to note that the above format of ITR 6 was amended w.e.f. AY 2012 -13 by CBDT. Moreover, this is more relevant for the department also. These formats are regulated by CBDT. Assessing Officer cannot overlook these formats and (interpret it in his own method of calculating tax credit while mak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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