9911796707
TMI Blog2010 (2) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 w.e.f. 1.4.1998 to the date of issue of refund ignoring that: a) as per proviso to sub section 2of section 115JAA of the IT Act, no interest shall be allowed on refund arising outnof tax credit allowed u/s 115JAA (1) of the IT Act. b) Refund due to credit of MAT allowed u/s 115JAA of the IT Act does not fall in the ambit of section 244A of the IT Act. 2. The Ld CIT(A) erred on facts and in law in directing to charge interest u/s 234C of the IT Act after adjusting MAT credit by ignoring that only after the amendment brought into statute in respect of section 234C of the Act by the Finance Act,. 2005 w.e.f. 1.4.2007, that while computing interest u/s 234C of the Act, the tax chargeable on total income declafred has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of Ld CIT(A). Reliance was also placed on the judgment of Hon'ble jurisdictional high Court rendered in the case of CIT vs. Jindal Exports Ltd., as reported in 314 ITR 137. 5. We have heard the rival submissions and have gone through the material available on record. We find that the dispute before the Hon'ble Delhi High Court in the case of Jindal Exports Ltd. (supra) was as to whether prior to April Ist, 2007, while computing the interest u/s 234B and 234C credit for tax paid u/s 115JAA was to be considered because it is admitted position that after the amendment by the Finance Act, 2006 w.e.f. 1.4.2007, credit of tax paid u/s 115JAA have to be set off before interest is computed u/s 234B and 234C of the Act. This was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le speaking for a Division Bench of this Court in Dr. Prannoy Ropy v. CIT (supra), with regard to the interpretation to be placed on the term 'advance tax' as defined in section 2(1) of the said Act. It was observed that an interpretation clause, as is well-known, it is not a positive enactment. It was specifically noticed that s. 2 of the said Act began with the words "unless the context otherwise requires". The Division Bench held that though 'advance tax' has been defined to mean the advance tax payable in accordance with the provisions of Chapter XVII-C, such a definition is not an exhaustive one and that 'advance tax' apart from being used only for the purpose of Chapter XVII-C may be held to be tax paid in advance before its due date. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee and cannot be considered as a refund of MAT credit because MAT credit available to the assessee is only meant for the purpose of adjustment against the demand of subsequent years and not for issue of refund. Hence the appellant is fully entitled for interest u/s 244A of the Act on the amount of refund of Rs.9,61,45,549/- issued to the assessee. The Assessing Officer is directed to calculate the interest u/s 244A from 1.4.1998 till the date of issue of refund on Rs.9,.61,45,549/- at the prescribed interest rates and refund the same accordingly." 7. As per the judgment of Hon'ble Delhi High Court rendered in the case of Jindal Exports Ltd. (supra) MAT credit which is available for set off falls within the meaning of "Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
