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2013 (5) TMI 22 - HC - Income TaxInterest under Section 244A denied - MAT credit under Section 115JA - AO found that the claim for MAT credit can be considered only after charging the surcharge on Income Tax - whether surcharge should have been calculated after deducting MAT credit and interest under Section 244A should have been granted - AO also given credit to TDS and accordingly ordered for refund - Held that:- As decided in Commissioner of Income Tax Vs. Tulsyan NEC Ltd. (2010 (12) TMI 23 - Supreme Court of India) MAT credit admissible in terms of section 115JAA has to be set off against the assessed tax payable, before calculating interest under Sections 234A, 234B and 234C. It is further held therein 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 year one, then, the set off such tax credit follows as a matter of course once the conditions mentioned under Section 115JAA are fulfilled and the grant of such credit is not dependent upon determination by the Assessing Officer. Thus, the Apex Court decided the issue in favour of the assessee therein. Also see Commissioner of Income Tax Vs. Chemplast Sanmar Ltd (2009 (4) TMI 61 - MADRAS HIGH COURT) It appears that the Tribunal had concentrated only on the issue as to whether giving credit for MAT before set off of TDS and advance tax from the tax payable by the assessee is correct or not. The Tribunal adverted its attention to the Chemplast Sanmar Ltd., case to answer the said issue and consequently rejected the Revenue's appeal. The grounds of appeal raised in this appeal by the Revenue also indicate that the issue before the Tribunal was only with regard to interest payable under Section 244A and not with regard to the adjustment of MAT credit - no merits in this appeal and accordingly reject the same by answering the question of law accordingly.
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