9911796707
TMI Blog2022 (12) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... the following grounds: "The grounds of appeal mentioned hereunder are without prejudice to one another. The Id. Commissioner of Income-tax (Appeals)-2, Rajkot (hereinafter referred to as the "CIT(A)"] was erred on facts as also in law in dismissing the appeal ex-parte without considering submission filed by the appellant. The Id. CIT(A)erred on facts as also in law in allowing set-off of accumulated tax credit u/s.115JAA of Act at Rs. 4,88,578/-only as against the actual claim of the appellant at Rs.5,03,235/- as per the return of income filed. The Action of AO in not allowing the set-off of accumulated tax credit u/s.115JAA of the Act to the extent of Rs.14,657/- is totally unjustified and uncalled for. Your Honour's appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to show as to how the order passed under section 154 of the Act was incorrect. Aggrieved by this order of the ld.CIT(A) the assessee is now before us , raising the above grounds. 4. Vis-à-vis the ground nos.1 & 4, they are general in nature and need no adjudication. Vis-à-vis ground no.2, that the ld.CIT(A) had dismissed the assessee's appeal ex parte without considering the submissions filed by the assessee, it was contended by the ld.counsel for the assessee that on the last date of hearing i.e. 26.3.2019, the assessee did file written submissions before the ld.CIT(A),copy of which was also placed before us at page no.1 to 9 and without considering the same, the ld.CIT(A) had passed an ex parte order. 5. On the merits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out that while taxes computed as per the normal provision amounted to Rs.94,401/-, that as computed under section 115JB of the Act on the Book Profits amounted to Rs.11,68,460/- , both including surcharge and cess therein. He pointed out from the computation of income that gross total income asper the normal provision was Rs.3,14,670/- on which taxes payable worked out Rs.94,401/- while the book profits under section 115JB of the Act amounted to Rs.75,62,847/- and taxeson the same worked out at 15% of the book profits at Rs.11,34,427/- plus education cess Rs.22,689/-, and secondary & higher education cess of Rs.11,344/-, thus total tax of Rs.11,68,460/-. Accordingly surplus of tax paid under 115JB as opposed to that payable under n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our attention to the chart pointing out the same as under: Particulars Ref As per Return of Income As per Order u/s.154 Total income 40,47,780 40,47,780 Tax under normal provision @ 30% 12,14,334 12,14,335 Add: Education Cess - 3% +36,430 A 12,50,764 12,14,334 Book Profit u/s.115JB of the Act 39,23,003 39,23,003 Tax on Book Profit @ 18.50% 7,25,756 7,25,756 Add: Education Cess - 3% +21,773 B 7,47,529 7,25,756 Tax liability (higher of A & B 12,50,764 12,14,334 Less: Set off of MAT credit 115JAA A-B -5,03,235 -4,88,578 Tax Payable 7,47,529 7,25,756 Add: Education Cess - 3% &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In a series of the decisions, the Hon'ble High Courts and the ITAT have held that the tax credit allowable under section 115JAA of the Act is including surcharge and cess components of tax thereon. The cases holding so are as under, including M/s Virtusa (India) Pvt. Ltd (supra) relied upon by the Ld.Counsel for the assessee: (i) Srei infrastructure Finance Ltd., v. DCIT [395 ITR 291 (Calcutta)] (ii) M/s. Scope International Pvt. Ltd., (TCA No. 588 of 2019) dated 16.08.2019 (Madras HC). (iii) Consolidated Securities Ltd., v. ACIT [172 ITD 163] (iv) (Virtusa (India) (P.) Ltd., v. DCIT [157 ITD 1160] (v) Bhagwati Oxygen Ltd., v. ACIT [167 ITD 645] (vi) SI Group India Pvt. Ltd., v. DCIT in ITA.No. 2348 & 2350/Mum/2017 dated 11.10.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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