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TMI Blog2011 (1) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... 2006 with effect from 1,4,2007 to provide along with tax deducted or collected at source, MAT credit under Section 115JAA also to be excluded while calculating assessed tax - ITA No. 104 of 2007 ITA No. 800 of 2006 ITA No. 1134 of 2006 ITA No. 1403 of 2006 - - - Dated:- 31-1-2011 - N. Kumar, Ravi Malimath, JJ. K.V. Aravind and M.V. Seshachala, Advs. for the Appellant JUDGEMENT These four appeals are by the revenue challenging the order passed by the tribunal holding that MAT credit should be given before charging of interest under Section 234B and 234C. These four appeals pertain to very same assessee and in respect of four assessment orders. As the questions involved in these appeals are the same, they are taken up toge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has no application. As in the instant case, the assessment orders are prior to 01.04.2007, hence, it has no application. Therefore, the appellate authorities committed a serious error in extending the said benefit to the assessee for the period prior to 01.04.2007. The Supreme Court had an occasion to consider this aspect in the case of Commissioner of Income Tax, Chennai vs. Tulsyan NEC Ltd., In Civil Appeal Nos.10677-79 of 2010 disposed off on 16th December 2010, After noticing Section 115-JA (1) and Section 115-JAA, it held as under: "The entire scheme of Sections 115JA(1) and 115JAA shows that if an assessee is entitled to a tax credit as a consequence of the assessee making payment of tax under Section 115JA(1) in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... available in terms of Section 115JAA(1) while computing the quantum of advance tax that is to be paid it must follow that an assessee would be entitled to do so otherwise it results in absurdity, viz., that an assessee pays advance tax on the footing that it is not entitled (when in fact it is so entitled) to the credit and thereafter claims a refund of such advance tax paid as a consequence of the set off. Moreover, when an Assessing Officer makes an intimation under Section 143(1) he accepts the return filed by the assessee to which the Assessing Officer may make an adjustment and consequently makes a demand or refund. Section 143(1) provides that where a return is made under Section 139 and if any tax or interest is found due on the basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax. This dichotomy was more spelt out because Section 1153AA did not provide for payment of interest on the MAT credit. To avoid this situation, Parliament amended Explanation 1 to Section 234B by Finance Act, 2006 with effect from 1,4,2007 to provide along with tax deducted or collected at source, MAT credit under Section 115JAA also to be excluded while calculating assessed tax. From the above, it is evident that any tax paid in advance/pre-assessed tax paid can be taken into account In computing the tax payable subject to one caveat, viz., that where the assessee on the basis of self computation unilaterally claims set off or MAT credit, the assessee does so at its risk as in case it is ultimately found that the amount of tax cre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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