Asst. Commissioner of Income Tax, Central Circle-2(1), Hyderabad V. Divi's Laboratories Limited , Hyderabad

ITA 238/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7686 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 10-06-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 28-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Section: 143(3); 143(1); 201; 13; 54; 154; 15

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 238 /HYD/20 20 (ASSESSMENT YEAR : 20 13 - 14 ) ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(1), HYDERABAD. .APPELLANT. VS. M/S. DIVIS LABORATORIES LIMI T ED, HYDERABAD. PAN AAACD 6745J .. RESPONDENT . APPELLANT BY : SHRI ROHIT MAJUMDAR (D.R.). RESPONDENT BY : SHRI RAMA RAO. DATE OF HEARING : 10.06.2021 . DATE OF PRONOUNCEMENT : 27. 0 8 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 201 3 - 1 4 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 12, HYDERABAD ORDER DT. 09.12. 2019 PASSED IN CASE NO. 10154/2019 - 20 IN PROCEEDINGS UNDER SECTION 1 5 4 OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE PERUSE D. 2 ITA NO. 238/HYD/2020 2. REVENUES SOLE SUBSTANTIVE GRIEVANCE PLEADS TH AT CIT(A) HAS ERRED IN LAW AND ON FACTS IN HOLDING THAT THE ASSESSEE'S SURCHARGE AND EDUCATION CESS IS TO BE CALCULATED AFTER DEDUCTING ITS MAT CREDIT OF 115JAA SECTION FROM THE TAX VIDE ITS FOLLOWING DISCUSSION : 4.3 I HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF THE APPELLANT, THE ORDER OF THE ASSESSING OFFICER, AND THE WRITTEN SUBMISSIONS OF THE AR. THE ASSESSING OFFICER HAS ALLOWED MAT CREDIT OF RS.5,39,12,228 ONLY, AS AGAINST RS.8,63,98,584 CLAIMED BY THE APPELLANT. IT IS THE CONTENTION OF THE APPELLANTS AR THAT THIS DIFFERENCE IS ON ACCOUNT OF SURCHARGE AND EDUCATION CESS NOT HAVING BEEN CONSIDERED BY THE ASSESSING OFFICER, WHILE GIVING THE MAT CREDIT. ON SIMILAR GROUNDS, THE HONBLE ITAT, HYDERA BAD, IN ITS ORDER DT.29.11.2017 IN ITA NO.596/HYD/2017, IN ASSESSEE S OWN CASE, HAS HELD AS UNDER : 9.6 THE TAX LIABILITIES FOR NORMAL PROVISIONS AS WELL AS MAT ARE CALCULATED WITH SURCHARGE AND CESS. THE MAT CREDIT IN ROW 7 ARE CALCULATED AUTOM ATICALLY USING THE PRESCRIBED ALGORITHM, THIS IS NOTHING BUT BALANCING FIGURE I.E., THE DIFFERENCE BETWEEN TAX LIABILITY AS PER NORMAL PROVISIONS AND MAT PROVISIONS. BOTH THE ABOVE TAX LIABILITIES ARE CALCULATED WITH SURCHARGE AND CESS. THESE ARE THE STAND ARD FORMAT, WHICH ARE EXPECTED TO BE FOLLOWED BY ALL THE ASSESSEES AND ALSO IMPORTANT TO NOTE THAT THE ABOVE FORMAT OF ITR 6 WAS AMENDED W.E.F. ASSESSMENT YEAR 2012 - 13 BY CBDT. MOREOVER, THIS IS MORE RELEVANT FOR THE DEPARTMENT ALSO. THESE FORMATS ARE REGU LATED BY CBDT. ASSESSING OFFICER CANNOT OVERLOOK THESE FORMATS AND (INTERPRET IT IN HIS OWN METHOD OF CALCULATING TAX CREDIT WHILE MAKING ASSESSMENT U/S 143(1) OF THE ACT.) PROCEED TO CALCULATE THE MAT CREDIT TO COMPUTE ASSESSMENT U/S 143(1) APPLYING DIFFE RENT METHODS WHEN THE PROPER AND CORRECT METHOD AS PROPOSED BY CBDT IN ITR - 6. THE ASSESSING OFFICER IS EXPECTED TO FOLLOW 3 ITA NO. 238/HYD/2020 THE ITR - 6 FORMAT TO COMPLETE THE ASSESSMENT U/S 143(1) OR 143(3) OF THE ACT. RESPECTFULLY FOLLOWING THE SAID JUDGMENT OF THE HON BLE JURISDICTIONAL ITAT, THE ASSESSING OFFICER IS DIRECTED TO ALLOW MAT CREDIT AFTER TAKING INTO CONSIDERATION SURCHARGE AND CESS. 3. IT EMERGES WITH THE ABLE ASSISTANCE OF BOTH THE LEARNED REPRESENTATIVES AS WELL AS FROM THE PERUSAL OF THE ABOVE LOWER APPELLATE DETAILED DISCUSSION THAT THIS TRIBUNALS CO - ORDINATE BENCH DECISION (SUPRA) HAS ALREADY ADJUDICATED VERY ISSUE IN ASSE SSEE'S FAVOUR AND AGAINST THE DEPARTMENT. THERE IS NO DISTINCTION ON FACTS OR LAW PIN POINTED AT THE REVENUES BEHEST BEFORE US . WE THUS ADOPT JUDICIAL CONSISTENCE TO AFFIRM THE CIT(A) LOWER APPELLATE FINDING DELETING THE IMPUGNED MAT ADJUSTMENT . ORDERED ACCORDINGLY. 4 . THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 27TH AUGUST , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 27. 0 8 .2021. * REDDY GP 4 ITA NO. 238/HYD/2020 COPY TO : 1. M/S. DIVIS LABORATORIES LIMITED, 1 - 72/23(P)/DIVIS/303, DIVIS TOWERS, CYBER HILLS,GACHIBOWLI, HYDERABAD. 2. ACIT, CENTRAL CIRCLE 2(1), HYDERABAD. 3. PR. C I T (CENTRAL) , HYDERABAD. 4. CIT(APPEALS) - 12, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.