INCOME TAX ACT, 1961

Section 115JA

MAT - Computation of MAT credit - AO excluded surcharge and cess for both tax paid under section 115JB and tax payable as per normal provisions -

AO computed eligible MAT credit without including surcharge and education cess while arriving at the amount of total tax payable under normal provisions of the Act as well as under section 115JB. Held: Income-tax levied under section 115JB is the tax rate as specified in the section increased by surcharge and education cess. It is pertinant to note that Finance Act specifies that surcharge and cess 'increase' the tax levied. It follows, therefore, that surcharge and cess are part of tax levied, and it can, therefore, safely be concluded that taxes paid under section 115JB include surcharge and cess alongwith basic rate of tax specified in the section. Accordingly, MAT credit was to be computed after inclusion of surcharge and cess for both the tax paid under section 115JB and tax payable as per normal provisions of the Act.

Applied:Tribunal, dated 11-10-2018 in the case of 'DCIT Ludhiana v. M/s. Aarti Steels Ltd.', in ITA No. 1619/Chd/2017

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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