As assessee followed requisite procedure thus additions of AO were deleted.
As assessee followed requisite procedure thus additions of AO were deleted.
"Assessee filed its return. It was processed by Central Processing Centre (CPC) & assessed u/s 143(1) (of Income Tax Act, 1961) raising demand of some amt. There was diff. in computation of tax by assessee & AO. CIT(A) held, computation of tax liability by increasing it with surcharge & edu. cess & then granting MAT credit is in order. ITAT held, assessee followed procedure properly & AO had made calculations applying his own interpretation or relied on programme." -501162
Facts in Brief:
1. Assessee filed its return of income admitting total income under the normal provisions of I.T.Act.
2. The return of income was processed by the Central Processing Centre (CPC), Bangalore and assessed u/s 143(1) (of Income Tax Act, 1961) raising demand of Rs. 32,06,700/-.
3. There was difference in the computation of tax by the assessee and the AO.
4. On appeal CIT(A) held that computation of tax liability by increasing the tax liability with surcharge and education cess and then granting MAT credit is in order and correct.
On appeal ITAT held,
5. Let us also analyse the case law of Richa Global Exports Pvt. Ltd. which was applied by CIT(A), the Delhi ITAT opined that section 115JAA (of Income Tax Act, 1961) applied only to income tax, not of income tax as increased by surcharge and education cess. We are of the view that the Apex court decision in the case of K.
6. Srinivasan (supra) may not have been brought to the knowledge of the ITAT, Delhi. Moreover, the explanation 2 of section 115JB (of Income Tax Act, 1961) is applicable to calculate tax liability u/s 115JB (of Income Tax Act, 1961) and the same explanation should also be applied for giving credit u/s 115JAA (of Income Tax Act, 1961).
7. The tax liabilities calculated u/s 115JB (of Income Tax Act, 1961) by applying the explanation 2, the tax liability so computed are remitted by the assessee and then the same was carried forward for future MAT credit. In our view, while calculating the MAT credit u/s 115JAA (of Income Tax Act, 1961), the same explanation '2' in section 115JB (of Income Tax Act, 1961) must be applied.
8. The earlier judgments in the cases of Universal Medicare, Valmet India and W yeth Limited are decided relying on the ITR - 6 as applicable in those AYs. Similarly, we also apply the ITR 6 format as applicable to AY 2012-13 as stated above. Assessee has relied on the ITR - 6 format to arrive at the total liability as well as the MAT credit calculations and paid tax accordingly.
9. In our view, the assessee had followed the procedure properly and the Assessing Officer had made the calculations applying his own interpretation or relied on the programme, we are not sure whether it is programme hitch or the interpretation of Assessing Officer was not in line with the calculations proposed in ITR-6. Therefore, we delete the addition made.
10. With regard to other grounds of appeal, they become infructuous and are dismissed as such.
11. In the result, appeal of the assessee is allowed.
News Reference: Virtusa (India) Private Limited ... vs Assessee
×
