Allowed set off of MAT Credit inclusive of Surcharge, Education Cess

Allowed set off of MAT Credit inclusive of Surcharge, Education Cess In M/s. Tata Motors Ltd. v. DCIT(LTU)-2 [ITA No. 2397/Mum/2019 decided on June 2…

A2ZBimal Jain

Jul 26, 2021

Last update on Jul 26, 2021

Allowed set off of MAT Credit inclusive of Surcharge, Education Cess In M/s. Tata Motors Ltd. v. DCIT(LTU)-2 [ITA No. 2397/Mum/2019 decided on June 25, 2021], M/s. Tata Motors Ltd. (“the Appellant”) filed an appeal against the order of Commissioner of Income Tax (Appeals)-1, Mumbai (“the Respondent”) computing set-off of Minimum Alternate Tax (“MAT”) credit under Section 115JAA of the Income Tax Act, 1961 (“the IT Act”) excluding surcharge and cess resulting in short grant of MAT credit of Rs. 21,70,98,794/-. The Hon’ble ITAT, Mumbai relied on Srei infrastructure Finance Ltd., v. DCIT [395 ITR 291 (Calcutta)] and M/s. Scope International Pvt. Ltd. [TCA No. 588 of 2019 dated August 16, 2019] and directed the Respondent to allow set off of MAT credit inclusive of surcharge and education cess and recompute the tax payable by the Appellant for the year under consideration. DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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A2ZBimal Jain

Chartered Accountant

CA Bimal Jain is a Member of Institute of Chartered Accountants of India since May 1994 and Member of Institute of Company Secretaries of India since December 2006 along with a Bachelors degree in Law. Also, he is a Qualified SAP - FI/CO Consultant and has more than 21 years of experience in Indirect Taxation and specializes in all aspects of Service Tax, Value Added Tax (VAT)/ Central Sales Tax (CST), Central Excise, Customs, Foreign Trade Policy (FTP), Special Economic Zone (SEZ), Export Oriented Unit (EOU), Export-Import Laws and well acquainted with the concept and impact of way forward Goods and Services tax (GST).