IN INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA No.283/CTK/2018 Assessment Year : 2014-2015 DCIT, Corporate Circle 1(1), Vs. M/s. Kalinga Hospital Ltd., GD- Bhubaneswar. 2C, Nandankanan Road, C.S.Pur, Bhubaneswar. PAN/GI R No. AABCK 3753 C (Appellant) (Respondent) Assessee by : Shri Amitav Satpathy, Manager (Finance) Revenue by : Shri Subhendu Dutta, DR Date of Hearing : 04/09/ 2019 Date of Pronouncement : 04/09/ 2019 ORDER Per C.M.Garg,JM This is appeal filed by revenue against order of CIT(A),1, Bhubaneswar dated 20.4.2018 for assessment year 2014-15. 2. only issue agitated by revenue is as to whether CIT(A) is justified in directing AO to give MAT credit u/s.115JA by including surcharge and education cess. 3. During course of assessment proceedings, Assessing Officer noticed that assessee had claimed total MAT credit for amount of Rs.2,97,30,016/- by including surcharge, education cess & secondary education cess in tax computed on income u/s.115JB of Act. As per decision of ITAT Delhi in case of M/s. Richa Global Exports Pvt Page 1|3 ITA No.283/CT K/2018 Asse ssment Year : 20 14- 201 5 Ltd vs ACIT, ITA No.2302/.Del/2012 for assessment year 2010-2011, Assessing Officer has allowed MAT credit for lesser amount without taking into consideration surcharge and cess paid on MAT. 4. On appeal, CIT(A) directed Assessing Officer to allow MAT credit, by observing as under: I have considered matter and perused written submission of assessee. 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 same. AO has followed decision of Hon'ble ITAT, Delhi in case M/s. Richa Global Exports (P) Ltd. assessee has referred to decisions of Hon'ble Allahabad High Court in case CIT v. M/s. Vacment India Agra and Hon'ble Calcutta High Court in case of Srei Infrastructure Finance Ltd. delivered on 12.8.2016. Copies of these judgments have been filed by assessee. In these judgments, Hon'ble High Courts have held that MAT credit u/s.H5JAA would include surcharge and education cess. (I also find that Hon'ble ITAT, Hyderabad Bench in case of M/s. Virtusa (India) (P) Ltd. in ITA No.l46/Hyd/2015 have held vide their order dt.4.3.2016 that term tax used in section 115JAA(2A) would include surcharge and cess. Going by provisions of law, this decision of Hon'ble ITAT, Hyderabad Bench is in consonance with Hon'ble Apex Court's decision in case of K. Srinivasan 83 ITR 346. Respectfully following decisions of Hon'ble Allahabad and Calcultta High Courts and decision of Hon'ble ITAT, Hyderabad, it is held that MAT credit would include education cess and surcharge. Hence, AO is directed to allow MAT credit accordingly. 5. Before us, although ld D,.R. supported order of Assessing Officer but could not point out any error in order of CIT(A). We find that with regard to case of M/s Richa Global Export Private Ltd (supra) we find that case deals with whether amount of MAT Credit under section 115JA would include surcharge and cess on tax payable on book profits which is similar ground in present appeal. We Page 2|3 ITA No.283/CT K/2018 Asse ssment Year : 20 14- 201 5 find that CIT(A) by following decision of Hon ble Allahabad High Court in case of Vacment India Agra and Hon ble Calcutta High Court decision in case of Srei Infrastructure Finance, wherein, it was held that MAT credit u/s.115JAA would include surcharge and education cess, has directed AO to allow MAT credit to assessee. This findings of CIT(A) are not controverted by ld D.R. during course of hearing. Hence, we find no infirmity in order of CIT(A), which is hereby confirmed and grounds of appeal of revenue are dismissed. 10. In result, appeal of revenue is 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 Order forwarded to : 1. Appellant : DCIT, Corporate Circle 1(1), Bhubaneswar 2. Respondent. M/s. Kalinga Hospital Ltd., GD-2C, Nandankanan Road, C.S.Pur, Bhubaneswar 3. CIT(A)-1, Bhubaneswar 4. Pr.CIT- 1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. True Copy By order Sr.Pvt.secretary ITAT, Cuttack Page 3|3 DCIT, Corporate Circle 1(1), Bhubaneswar v. Kalinga Hospital Ltd