9911796707
TMI Blog2006 (7) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal of the revenue for assessment year 2000-01, filed against the order of CIT(A) dated 28-12-2004. 2. The only effective ground taken by the revenue reads as under : "On the facts and in the present circumstances of the case, the learned CIT(A) has erred in directing to charge interest under sections 234B 234C of the Income-tax Act, 1961 after setting off of MAT credit." 3. The f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment. For rectifying the above mistake the Assessing Officer issued a notice under section 154 of the Act on 16-1-2004. According to the assessee as per the provisions of section 115JAA, the Interest under sections 234B 234C is to be calculated after allowing MAT credit. Therefore, the learned Assessing Officer rectified the same and allowed MAT credit after charging interest under sections 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned CIT(A) that the issue being debatable with regard to the assessment order cannot be rectified by withdrawing MAT credit under section 154 of the Act. The very ground taken by the revenue, macroscopically reveals, crystal clear, that the issue of allowing set off before charging interest under sections 234B 234C is a debatable one which cannot be decided without resorting to long ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This conclusion appeals to logic besides being correct as per the plain reading of the provision of law that to allow set off of tax paid before charging interest on sort payment/deferred payment of advance tax. Therefore, in our considered opinion, a demand of Rs. 52,43,039 raised by the revenue after rectifying the order passed under section 143(1) of the Act on 30-12-2002 is not correct and h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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