Adurjee and Bros Pvt.Ltd, Pune V. Deputy Commissioner of Income-tax, CPC, Bangalore

ITA 997/PUN/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 4996 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 10-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 2

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.997/PUN/2019 धििाारण वर्ा / Assessment Year : 2016-17 Adurjee & Bros Pvt. Ltd., Sarosh Bhavan, 16-B/1, Dr. Ambedkar Road, Pune – 411001 PAN : AABCA4890J .......अपीलार्थी / Appellant बिाम / V/s. DCIT, CPC, Bangalore ......प्रत्यर्थी / Respondent Assessee by : Shri R.S. Abhyankar Revenue by : Shri Arvind Desai सुनवाई की तारीख / Date of Hearing : 31-05-2022 घोषणा की तारीख / Date of Pronouncement : 21-07-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 10-05-2019 passed by the Commissioner of Income Tax (Appeals)-1, Pune [‘CIT(A)’] for assessment year 2016-17. 2. The assessee raised three grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A) is justified in confirming the order of AO in not granting minimum alternate tax credit u/s. 115JAA of the Act in the facts and circumstances of the case. 2 ITA No.997/PUN/2019, A.Y. 2016-17 3. Heard both the parties and perused the material available on record. We note that the assessee claimed MAT credit utilized to an extent of Rs.33,41,567/- u/s. 115JAA of the Act, the CPC, Bangalore allowed MAT credit to an extent of Rs.30,73,272/- and disallowed Rs.2,68,295/-. The contention of ld. AR, Shri R.S. Abhyankar is that tax includes surcharge and cess. The assessee is entitled to entire credit as claimed to an extent of Rs.33,41,567/- and placed reliance on the decision of Hon’ble Supreme Court in the case of K. Srinivasan reported in 83 ITR 346 (SC). The CIT(A) held that the education cess is not included in income tax and held the view of AO is correct in not allowing MAT credit in respect of education cess. We note that the tax liabilities under normal provisions as well as under minimum alternate tax provisions are calculated with surcharge and cess. We find Sub-section (1) of Section 2 of Finance Act, 2015 provides that income tax shall be increased by surcharge. Further, Sub-section (11) of Section 2 of Finance Act, 2015 provides that the amount of income tax as increased by surcharge shall be further increased by education cess. Further, the amount of income tax along with surcharge, education cess is further increased by additional surcharge in the form of secondary and higher education cess under Sub-section (12) of section 2 of Finance Act, 2015. Therefore, in our opinion, income tax includes surcharge, education cess and additional surcharge in the form of secondary and higher education cess and there cannot be denial of utilization of credit u/s. 115JAA of the Act towards surcharge and education cess when the assessee paid tax including the said surcharge and education cess. Therefore, the assessee is entitled to claim minimum alternate tax credit including surcharge and education cess. 4. On perusal of the statement of computation, we note that the assessee claimed minimum alternate tax credit of Rs.33,41,567/- but the AO denied to grant to an extent of Rs.2,68,295/- (Rs.1,70,968/- + 3 ITA No.997/PUN/2019, A.Y. 2016-17 Rs.97,327/-) being surcharge and education cess, respectively, in our opinion, is not justified. Therefore, the AO is directed to allow set off credit including surcharge and education cess. Thus, the addition made by the AO and as confirmed by the CIT(A) is deleted. 5. In the result, the appeal of assessee is allowed. Order pronounced in the open court on 21 st July, 2022. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 21 st July, 2022. रदव आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-1, Pune 4. The Pr. CIT-1, Pune 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune