TMI Blog2008 (11) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... year through an application moved under section 154 of the Act requested allowance of credit of MAT paid in earlier assessment years 1989-90 and 1999-2000 against tax payable on assessed income relying on section 115JA of the Income-tax Act, 1961 (in short the Act ). Though the Assessing Officer allowed such credit, this was done only after charging interest under sections 234B and 234C of the Act. 3. In its appeal before CIT(A), assessee s contention was that such interest was to be charged only after allowing the MAT credit against the taxes paid. Assessee also relied on the decisions of Chandigarh Bench of this Tribunal in the case of Phillips India Ltd. v. Asstt. CIT [2005] 92 ITD 441 and Chennai Bench of this Tribunal in Chem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in allowing such credit after the charge of interest under sections 234B and 234C of the Act. According to him, the amendments in sections 234B and 234C of the Act cited by the ld. CIT(A) while refusing assessee s claim in this regard, did not alter the position as it existed prior to 1-4-2007 when the relevant Explanations were substituted in sections 234B and 234C by Finance Act, 2006. 5. Per contra, learned D.R submitted that what was not provided by law, could never be claimed by an assessee. According to him amendments to sections 234B and 234C whereby relevant Explanations were substituted, which came through Finance Act, 2006, had effect from 2-4-2007 only. Therefore, prior to that date, according to the ld. DR., there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest under the respective section, it is implied that prior to the date of such substituted Explanation coming into effect, i.e., from 1-4-2007, credit of tax under section 115JAA could not be allowed before interest was computed under sections 234B and 234C of the Act on the assessed tax. However, we do not find this argument to be attractive Explanation as substituted by Finance Act, 2006 in sections 234B and 234C does not say that tax credit should not be allowed as a set off while computing assessed tax prior to the date of such substituted explanation coming unto force. Reliance placed on the explanatory memorandum by the ld. CIT(A) also appears to be misplaced. Explanatory memorandum states that representations were received p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no guarantee that the reasons which led to its introduction and the objects thereby sought to be achieved have remained the same throughout till the Bill emerges from the House as an Act of the Legislature, for they do not form part of the Bill and are not voted upon by members. We, therefore, consider that the Statement of Objects and Reasons appended to the Bill should be ruled out as an aid to the construction of the statute." Again in the case of Shashikant Laxman Kale v. Union of India AIR 1990 SC 244 it has been held that an explanatory memorandum is easily not an accurate guide of a Financial Act. Therefore, in our opinion, there can be no logical conclusion, drawn by implication from an explanatory memorandum, to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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