In this case, it was brought to the notice that the tax effect is for Rs.9,35,762/-, and therefore, the appeal was not maintainable in view of CBDT Circular No. 21/2015 dated 10.12.2015. But, it was also submitted that on the amount of tax, amounts of surcharge and education cess were also payable amounting to Rs.93,576/- and Rs.30,880/- respectively, however, the surcharge and education cess are not to be considered for the calculation of tax effect. The Hon’ble Tribunal, after considering the decision of Hon’ble Chennai Bench in the case of ACIT vs. Shri R. Viswanathan, agreed with the view that surcharge and education cess shall not be included in the word ‘tax’ for the purpose of examining of tax effect, as envisaged in CBDT Circular No. 21/2015 dated 10.12.2015.
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