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TMI Blog2014 (3) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... gal position is the same and the Explanation introduced by Finance Act, 2006, which came into effect from 01.04.2007, is only clarificatory – thus, the condition is not applicable for the assessee for the period prior to 01.04.2007 – Decided against Revenue. - ITA No.641 of 2007 - - - Dated:- 10-2-2014 - Mr. Dilip B Bhosale and Mr. B Manohar, JJ. For the Appellant : Sri K V Aravind, Adv. For the Respondent : Sri S Parthasarathi, Adv. JUDGEMENT Per: Dilip B Bhosale: While admitting this appeal by order dated 17.6.2009, a Division Bench framed the following substantial question of law: Whether the Appellate Authorities were correct in holding that the difference between the tax payable on its total incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion, the Hon'ble Supreme Court in paragraphs 11 and 12 made the following observations: 11. To answer, we need to look at Section 234B. Under that section, assessed tax means the tax on the total income determined under Section 143(1) or on regular assessment under Section 143(3) as reduced by the amount of tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income. The definition, thus, at the relevant time excluded MAT credit for arriving at assessed tax. This led to immense hardship. The position which emerged was that due to omission on one hand MAT credit was avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 115JAA(3); that no interest would be payable on such credit by the Government under the proviso to Section 115JAA(2) and that the assessee would be liable to pay interest under Sections 234B and 234C on the shortfall in the payment of advance tax despite existence of MAT credit standing to the account of the assessee. Thus, despite MAT credit standing to the account of the assessee, the liability of the assessee gets increased instead of it getting reduced. 5. This Court, in the COMMISSIONER OF INCOMETAX v. M/s. DECCAN CREATIONS PVT. LTD.' in ITA No.104/2007 with connected appeals decided on 31.1.2011, wherein the revenue had challenged the order passed by the Tribunal, held that MAT credit should be given before charging int ..... X X X X Extracts X X X X X X X X Extracts X X X X
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