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2018 (3) TMI 465 - AT - Income TaxComputation of Interest u/s 234B and 234C - MAT credit to be allowed from the assessed tax, and thereafter the interest u/s 234B and C should be computed - AO computed the interest under section 234B and C without considering MAT credit - Held that:- Explanation 1 (v) of sub section 1 of section 234B clearly guides that MAT credit set off should be allowed while computing ‘assessed tax’. Therefore, it is abundantly clear that in the assessee’s case under consideration, the available MAT credit was at ₹ 12,91,616/- up to assessment year 2006-07, and the same should be allowed first, (that is, before computing the interest under section 234B and C of the Act), but, in fact, we note that AO has not allowed this MAT credit to the assessee. We note that Parliament amended Explanation 1 to Section 234B by Finance Act, 2006 w.e.f. 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. Based on the factual position explained above, we direct the assessing officer to allow MAT credit, which is available with the assessee at ₹ 12,91,616/- and , then, interest under section 234B and C, if any, may be charged, that is, after set off of MAT credit, the AO may compute the interest under section 234B and C. - Decided in favour of assessee Also as per assessee while computing ‘assessed tax’ , the AO has allowed TDS claim at ₹ 4,35,927/- whereas as per assessee it should be ₹ 4,36,617/-. We direct the assessing officer to allow the claim of the assessee for the balance amount of ₹ 670/- (Rs.4,36,617/- – ₹ 4,35,927/-), after verification, as per law. - Decided in favour of assessee for statistical purposes.
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