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TMI Blog2015 (1) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... te that we cannot accept the case of the Department because it would mean that even if the assessee does not have to pay advance tax in the current year, because of his brought forward MAT credit balance, he would nevertheless be required to pay advance tax, and if he fails, interest under section 234B would be chargeable. The consequence of adopting the case of the Department would mean that the MAT credit would lapse after five succeeding assessment years under section 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 the M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether on the facts and in the circumstances of the case, MAT credit can be given priority of set off against tax payable, contrary to the scheme of Schedule G of Form 1? 2. The assessee was engaged in the business of construction and sale of multi storeyed office-cum-shopping complex. For the assessment year 2001-2002, the assessing officer, inter alia, made an addition on account of amenity charges to the tune of ₹ 79.26 Lakhs paid by the buyers for air conditioning the shops and also made additions on the amount received for car park. The assessing officer calculated interest payable under Sections 234B and 234C and gave credit for MAT thereafter. Aggrieved by the said assessment, the assessee preferred appeal before the CIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue and against the assessee. 5. Insofar as the 3rd and 4th substantial questions of law raised with regard to demand made by the Department claiming interest under Sections 234B and 234C before giving credit for MAT (Minimum Alternative Tax), it is submitted by the learned counsel on either side that the above two issues have been decided in favour of the assessee by the Hon'ble Supreme Court in the case of Commissioner of Income Tax Vs Tulsyan NEC Ltd. (330 ITR 226), wherein the Supreme Court held as under :- 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept the case of the Department because it would mean that even if the assessee does not have to pay advance tax in the current year, because of his brought forward MAT credit balance, he would nevertheless be required to pay advance tax, and if he fails, interest under section 234B would be chargeable. The consequence of adopting the case of the Department would mean that the MAT credit would lapse after five succeeding assessment years under section 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 the MAT credit standing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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