DCIT, CORPORATE CIRCLE-1(1), BHUBANESWAR vs. M/S. KALINGA HOSPITAL LTD., BHUBANESWAR

per the decision of ITAT Delhi in the case of M/s. Richa Global Exports Pvt

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Ltd vs ACIT, ITA No.2302/.Del/2012 for the assessment year 2010-2011,

the Assessing Officer has allowed MAT credit for a lesser amount without

taking into consideration the surcharge and cess paid on MAT.

credit, by observing as under:

“I have considered the matter and perused the written submission of the assessee. The issue involved here is whether MAT credit would include surcharge and education cess paid on MAT. This issue has remained debatable and there are conflicting opinion on the same. The AO has followed the decision of the Hon'ble ITAT, Delhi in the case M/s. Richa Global Exports (P) Ltd. The assessee has referred to the decisions of the Hon'ble Allahabad High Court in the case CIT v. M/s. Vacment India Agra and the Hon'ble Calcutta High Court in the case of Srei Infrastructure Finance Ltd. delivered on 12.8.2016. Copies of these judgments have been filed by the assessee. In these judgments, the Hon'ble High Courts have held that MAT credit u/s.H5JAA would include surcharge and education cess. (I also find that the Hon'ble ITAT, Hyderabad Bench in the case of M/s. Virtusa (India) (P) Ltd. in ITA No.l46/Hyd/2015 have held vide their order dt.4.3.2016 that the term tax used in section 115JAA(2A) would include surcharge and cess. Going by the provisions of law, this decision of the Hon'ble ITAT, Hyderabad Bench is in consonance with the Hon'ble Apex Court's decision in the case of K. Srinivasan 83 ITR 346. Respectfully following the decisions of the Hon'ble Allahabad and Calcultta High Courts and the decision of the Hon'ble ITAT, Hyderabad, it is held that MAT credit would include education cess and surcharge. Hence, the AO is directed to allow MAT credit accordingly.” 5. Before us, although ld D,.R. supported the order of the Assessing

Officer but could not point out any error in the order of the CIT(A). We find

that with regard to the case of M/s Richa Global Export Private Ltd (supra)

we find that the case deals with whether the amount of MAT Credit

under section 115JA would include surcharge and cess on the tax payable

on the book profits which is the similar ground in the present appeal. We

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find that the CIT(A) by following the decision of Hon’ble Allahabad High

Court in the case of Vacment India Agra and Hon’ble Calcutta High Court

decision in the case of Srei Infrastructure Finance, wherein, it was held that

MAT credit u/s.115JAA would include surcharge and education cess, has

directed the AO to allow MAT credit to the assessee. This findings of the

CIT(A) are not controverted by the ld D.R. during the course of hearing.

Hence, we find no infirmity in the order of the CIT(A), which is hereby

confirmed and grounds of appeal of the revenue are dismissed.

Order pronounced on 4/09/2019. Sd/- sd/- (Laxmi Prasad Sahu) (Chandra Mohan Garg) ACCOUNTANT MEMBER JUDICIAL MEMBER

Cuttack; Dated 4 /09/209 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : DCIT, Corporate Circle 1(1), Bhubaneswar

Sr.Pvt.secretary ITAT, Cuttack

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