INCOME TAX ACT, 1961

Section 115JAA

MAT - MAT computation - Computation of MAT credit - To be inclusive of surcharge and education cess

Assessee was engaged in the business of providing remote infrastructure management and other services to its customers. While computing the tax liability, AO calculated MAT credit under section 115JAA at Rs. 17,44,045 as against Rs. 18,86,185 claimed by the assessee. Consequently, interest under section 234C was also charged by the AO for the deficit in tax. This difference in figure arose because of the fact the assessee computed the difference in tax payable under normal provisions of the Act and tax payable under section 115JB after including surcharge and education cess to be part of the tax. Whereas AO computed the same ignoring surcharge and education cess from the tax portion. Held: For purpose of computation of MAT credit under section 115JAA tax portion has to be inclusive of surcharge and education cess and accordingly, the computation made by the assessee in its return of income in respect of MAT credit was correct. Assessee filed its return of income in ITR-6 under Schedule for MAT credit, he was precluded from filling up any figure as they are automatically picked from yet another schedule in the same ITR form, wherein the figures mentioned thereon, represent tax payable under normal provisions and under section 115JB respectively, which was admittedly inclusive of surcharge and education cess. Thus, AO was directed to accept the working given by assessee as per return of income, further charging of interest under section 234C should always be on returned income, and not on assessed income.

Followed:CIT v. K. Srinivasan (1972) 83 ITR 346 (SC) : 1972 TaxPub(DT) 352 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

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