You need to explain what the screen shots are please. I am assuming the two images to the right are a smoothed and unsmoothed image?
If they are you clearly have an issue in the area of the sharp edge. It may be unmerged verts, co-resident vert, or co-planar faces, or flipped normals, .....
If you can upload a .ma I can take a look at it.
"If I have seen further it is by standing on the shoulders of giants." Sir Isaac Newton, 1675