9911796707
TMI Blog2008 (2) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 42,97,006/- Less : MAT Credit set off ₹ 12,78,561/- ₹ 8875,544/- ₹ 1,01,54,105/- Refund due ₹ 58,57,099/- It appears that when the return was processed under section 143(1) of the Income-tax Act, the Assessing Officer calculated the refund at a lesser figure of ₹ 44,47,478/-. The difference arose because while calculating the refund the Assessing Officer did not set off the MAT credit from the tax payable and proceeded to deduct only the TDS from the tax payable. This mistake was pointed out by the assessee by an application under section 154 of the Act. The application was however rejected by the Assessing Officer by order passed on 31.1.2005. He observed that the TDS is more than the lax payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee under section U5JA (1) on the amount of book profit shall be given credit in accordance with the provisions of the Act. Sub-section (2) says that the amount of tax credit to be allowed shall be the difference of the tax paid under section 115JA (1) and the amount of tax payable on the total income of the assessee computed in accordance with the other provisions of the Act. Subsection (4) declares that the tax credit computed as above shall be allowed set off in a year when tax becomes payable on the total income computed in accordance with the normal provisions of the Act. Sub-section (5) quantifies the amount of tax credit to be so set off and it says that it shall be to the extent of the difference between the tax on the assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the issue in a broad-base manner and has opined that the method of prescribing the order of priority of adjustment between TDS, advance tax and MAT credit as given in the Schedule-G of Form No. 1, which is the return form prescribed by the Board for companies, is contrary to the intention of the legislature and is even in excess of the delegated authority. It may be mentioned that in the return of income, the priority of adjustment given is that interest under sections 234B and 234C shall be first deducted and only thereafter the lax credit under section 115JAA shall be given. The Tribunal did not approve of this order of priority of adjustment. To the same effect is the decision of the Chandigarh Bench of the Tribunal in the case of Ph ..... X X X X Extracts X X X X X X X X Extracts X X X X
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