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2009 (12) TMI 102 - MADRAS HIGH COURTInterest u/s 234B or 234C - Tax Credit - Whether in the facts and circumstances of the case, the Tribunal was right in holding that the assessee is entitled to adjust the MAT credit before charging interest u/s 234B & 234C - Whether on the facts and circumstances of the case the MAT credit can be given priority of set off against tax payable, contrary to the scheme of Schedule G of Form 1 – held that - the Income Tax Tribunal is right in law in holding that the carry forward MAT credit available to the assessee was to be adjusted first before charging interest under Sections 234B and 234C – decision of delhi high court in the matter of CIT vs. Jindal Experts Ltd., 2009 -TMI - 32986 - DELHI HIGH COURT followed - credit under Section 115JAA should be given effect to before charging of interest under Section 234A, 234B and 234C of the Act. We are in agreement with the reasoning given by the Delhi High Court. The learned counsel appearing for the revenue has not produced any materials or given compelling reasons to take a contrary view with that of the Delhi High Court - the intention of the legislature is to give tax credit to tax and not to the tax and interest. Once the intention is clear, the revenue cannot rely on the Form-I to say that the MAT credit under Section 115JAA should be given only after tax and interest. Rule 12(1)(a) and Form-I cannot go beyond the provisions of the Act. Form-I cannot lay down the order of priority of adjustment of TDS, advance Tax, MAT credit under Section 115JAA which is contrary to the provisions of the Act
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