9911796707
TMI Blog2021 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... AT credit u/s. 115JAA (2A) exclusive on surcharge and education cess, resulting in short credit of Rs. 1,90,167/- 3. The fact in brief is that assessee has filed return of income on 29th September, 2015 and the return of income was processed u/s. 143(1) of the Act by the CPC, Bangalore on 26th September, 2016. 4. Against the order u/s. 143(1), the assessee has filed appeal before the ld. CIT(A) stating that it has claimed MAT credit of Rs. 16,20,001/- u/s. 115JAA of the Act in the return of income. However, while processing the retune of income u/s. 143(1) the MAT credit of only Rs. 14,29,834/- was allowed. The Assessing Officer in its appeal before the ld. CIT(A) has mentioned that the Assessing Officer in the intimation u/s. 143(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n credit of only Rs. 14,29,834/- excluding of surcharge and education cess resulting in short credit of Rs. 1,90,167/- while allowing MAT credit u/s. 115JAA(2A) of the Act. In the earlier years, the assessee has paid tax on book profit u/s. 115JB of the Act and section 115JAA of the act provides that where any amount of tax is paid u/s. 115JB(1) by assessee for any assessment year, credit in respect of the taxes so paid shall be allowed on the difference of the tax paid u/s. 115JB and the amount of tax payable by the assessee company on its total income computed in accordance with the provision of act. The assessee has referred the case of CIT Vs. K. Srinivisan 83 ITR 346 (SC) wherein Hon'ble Supreme Court held that the term 'tax' includes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the same Explanation should also be applied for giving credit u/s 115JAA. The tax liabilities calculated u/s 115JB by applying the explanation 2, the tax liability so computed are remitted by the assessee and then the same was carried forward for future MAT credit. In our view, while calculating the MAT credit u/s 115JAA, the same Explanation '2' in section 115JB must be applied." We have also gone through the decision of ITAT in the case of Consolidated Securities Pvt. Ltd. Vs. ACIT (2018) 98 taxmann.com 418 (Del) wherein it is held MAT tax credit available from earlier years, inclusive of surcharge and education cess etc is to be reduced from amount of tax determined on total income of current year after added surcharge and ed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... calculated on the resultant amount. This shows that the amount of interest under the Act is liable to be paid on the amount of tax payable determined after deducting, inter alia, the amount of MAT tax credit. 9. We, therefore, hold that the amount of the MAT tax credit, 'inclusive of surcharge and education cess etc., if any, should be reduced from the amount of tax determined on the total income after adding surcharge and education cess, etc. Only the resultant amount payable will suffer interest under the relevant provisions of the Act. Since the amount of MAT tax credit is uncertain, we set aside the impugned order and remit the matter to the file of the Ld. AO for ascertaining the correct amount of MAT tax credit available with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
