TMI Blog2016 (4) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... 4) TMI 151 - BOMBAY HIGH COURT ) - ITA No. 925/Mum/2014 - - - Dated:- 16-3-2016 - Shri Jason P. Boaz, Accountant Member And Shri Sandeep Gosain, Judicial Member For the Appellant : Shri Mukundraj Chate For the Respondent : Ms. Saisudha Multani ORDER Per Jason P. Boaz, A.M. This appeal by the Revenue is directed against the order of the CIT(A)- 39, Mumbai dated 07.11.2013 for A.Y. 2001-02. 2. The facts of the case, briefly, are as under: - 2.1 The assessee filed its return of income for A.Y. 2001-02 on 30.10.2001 declaring total income of ₹ 11,38,79,120/- under normal provisions and Book Profit of ₹ 11,95,97,648/- under section 115JB of the Income Tax Act, 1961 (in short 'the Act'). Subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see partial relief. 3. Revenue is aggrieved by the order of the CIT(A)-39, Mumbai dated 07.11.2013 for A.Y. 2001-02 and has preferred the appeal raising the following grounds: - 1. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in allowing interest u/s. 244A on MAT credit i.e. taxes paid u/s. 115JA without considering that proviso to sub section 2 of section 115JA specifically provides that no interest shall be payable on tax credit allowed u/s. 115JA(1). 2. Whether on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in following the decision of the CIT vs. Jindal Exports Ltd. (314 ITR 137 (Del) wherein the Hon'ble Delhi High Court had right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) at paras 7 and 8 of her order, following the decisions of the Hon'ble Bombay High Court in the case of APAR Industries Ltd. (supra) has held as under: - 7. As regards to the grounds raised with regard to the interest under s. 244A as per the proviso to section 115JAA no interest shall be payable on the tax credit allowed under sub-section 1(A). However, it has been stated by the Hon'ble High Court in the case of APAR Industries Ltd., interest under s. 244A is allowable. It is hereby clarified that though no interest is due, which is in accordance with the proviso to section 115JAA, but once the credit is given and there is still tax payable and further credit is given to the TDS and advance tax, then refund, if any ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in following the decisions of the Hon'ble Delhi High Court in the case of Jindal Exports Ltd. (314 ITR 137( (Del) that credit under section 115JA of the Act to be allowed on brought forward MAT credit from gross demand before charging interest under section 234B and 234C of the Act. The learned D.R. was heard in support of the grounds raised and he supported the order of the AO on this issue. 5.2 Per contra, the learned A.R. for the assessee contended that there was no error in the impugned order of the learned CIT(A) on this issue; in following the decision of the jurisdictional High Court in the case of APAR Industries Ltd. (supra) to hold that credit for brought forward MAT is to be allowed from the gross demand before charging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titution to the explanation (1) section 234B by the Finance Act of 2006 MAT credit could not be reckoned while computing the liability to pay interest under s. 234B. However, the said view has been overruled by the decision of the Hon'ble High Court of Bombay in the case of CIT vs. APAR Industries Ltd. 2010 - TIOL- 255-HC-MUM-IT. The Hon'ble High Court of Bombay after analyzing the provisions of section 234B and 115JAA has categorically held that the said amendment to section 234B is clarificatory in nature and consequently even prior to the amendment the credit to which the assessee was entitled under s. 115JAA could not ignored in determining the liability to pay interest under s. 234B. It has been held by the Hon'ble High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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