TMI Blog2021 (6) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ding surcharge and cess eligible for MAT credit u/s. 115JB of the Act. It is also observed that assessee has not debited surcharge and cess in the profit and loss account. In the light of the above facts and findings of the various judicial pronouncements as cited supra in this order, we consider that ld. CIT(A) is not justified in disallowing the claim of MAT credit of the assessee pertaining to the surcharge and cess which was already paid by the assessee as part of book profit u/s. 115JB(A) of the Act. Accordingly, this appeal of the assessee is allowed. - ITA No. 2137/Ahd/2018 - - - Dated:- 13-5-2021 - Shri Rajpal Yadav, Vice President And Shri Amarjit Singh, Accountant Member For the Assessee : Shri Aparna Parelkar, A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 225 taxmann.com 01 (Del). 5. During the course of appellate proceedings[ before us the ld. counsel has placed reliance on the decision of Hon ble Supreme Court in the CIT vs. Shrinivasan 83 ITR 346 stating that the term tax include surcharge. The ld. counsel has also placed reliance on the decision of Hyderabad ITAT in the case of Virtusa (India) (P.) Ltd. 67 taxmann.com 65 contending that the decision of Richa Global rendered in 2010-11 was distinguished in this case and held that MAT credit should be computed inclusive of surcharge and cess in view of ITR 6 format. The ld. counsel has also submitted that format of assessment year 2012-13 was amended by CBDT and as per the amended format book profit including surcharge and education ces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year credit in respect of the taxes so paid for such assessment year shall be allowed on the difference of the taxes paid u/s. 115JB and the amount of taxe payable by the company on its total income computed in accordance with the other provisions of the Act. In other words, MAT credit shall be computed as under:- MAT credit available = Tax Paid u/s 115JB- Tax Payable on the total income under normal provisions of the act. In this case, the ITAT Hyderabad has also distinguished the decision of ITAT Delhi in the case of Richa Global (P) Ltd. vs. ACIT (2012) 54 SOT 185/25 taxmann.com at the Delhi. The relevant part of the decision is reproduced as under:- 9.6A Let us also analyse the case law of Richa Global Exports (P.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Now coming to [he disallowance of the MAT credit in respect of surcharge and cess to tune of ₹ 1089399/-, Assessee placed reliance of the Tribunal's decision reported in the case of Consolidated Securities Ltd v. Asstt. C1T [2018J 96 taxmann,comA18/l72 ITD 163 (Delhi - Trib.) wherein, it was held 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., and only the resultant amount payable will suffer interest under the relevant provisions of the Act. In the aforesaid decision, vide paragraph no. 8 9 it was held as under:- 8. A careful circumspection of the above p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the present case on all fours and by respectfully following the same, 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 to the assessee including of surcharge/cess and then allow tax credit as indicated in the decision of the Consolidated Securities Ltd. (supra). In the result, the appeal filed by the Assessee stands partly allowed for statistical purposes. The Hon ble High Court of Calcutta in the case of Srei Infrastructure Finance Ltd. Vs. DCIT, Circle-11(2), Kolkata (2016) 72 taxmann.com 239 (Calcutta) has held that MAT credit u/s. 115JA had to be allowed before making addition of surcharge and cess and MAT credit u/s. 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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