TMI Blog2018 (3) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA No.1687/Kol/2016 - - - Dated:- 7-2-2018 - SHRI N. V. VASUDEVAN, JM AND DR. A.L.SAINI, AM For The Appellant : Shri A.K. Bandyopadhyay, FCA For The Respondent : Shri S. Dasgupta, Addl. CIT(DR) ORDER Per Dr. Arjun Lal Saini, AM: The captioned appeal filed by the assessee, pertaining to Assessment Year 2007-08, is directed against an order passed by the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any on 26.03.2009. The assessee company submitted a rectification petition u/s 154 of the Act on 27.03.2009 in response to the intimation served on 26.03.2009.In the rectification petition u/s 154, the assessee company claimed that credit for TDS was allowed in the intimation at ₹ 4,35,927/and the relevant TDS certificates in original had been submitted by the assessee company. On verification of the TDS certificates, it had been seen that total amount of tax deducted for an amount of ₹ 4,36,617/- was not given credit at the time of processing and since the mistake was apparent from record that credit for TDS of ₹ 4,36,617/- was allowed to the assessee company. The assessee company, in the petition further claimed that interest u/s 234B and 234C were not leviable in the case of the company for the reason that assessee company did not make payment of advance tax on the basis of the decision of the Supreme Court in the case of CIT vs. Kwality Biscuits Ltd.(2006) reported in 15 Taxman 658.The submission of the assessee company was noted by the AO and observed that the said Supreme Court decision relates to Section 115J of the Act, whereas the assessee company was lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e A.Y 2007-08 adjusted ₹ 52,390/- Balance Payable ₹ 8,68,976/- 4. Aggrieved by the order passed by the AO, the assessee filed an appeal before the CIT(A) who has confirmed the addition made by the AO. The assessee submitted before the CIT(A),that interest u/s 234B and 234C are not leviable in view of the decision of Hon ble Supreme Court in the case of CIT vs. Tulsyan Ltd. 196 Taxman 181. 4.1 The CIT(A) noted that the AO while passing order u/s 154 of the I.T. Act dated 16.04.2009 held that section 115JB of the Act, had been introduced by Finance Act 2000 w.e.f. 01.04.2001. As per this section, the Book Profit is deemed to be the total income of the assessee. The AO has relied upon the decision of Hon ble Karnatake High Court in the case of M/s. Jindal Thermal Power Co. 286 ITR 182 that the Book Profits are deemed and the liability to pay Advance Tax arose.The AO has further relied upon the CBDT circular no.13/2001. The AO on the basis of the CBDT s circular and the decision cited above held that the assessee company was liable to pay Advance Tax and for failure to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be chargeable. The consequence of adopting the case of the Department would mean that MAT credit would lapse after five succeeding assessment years under Section 115JAA(3); that no interest would be payable on such credit by the Government under the proviso to Section 115JAA(2) and that the assessee would be liable to pay interest under Sections 234B and C on the shortfall in the payment of advance tax despite existence of MAT credit standing to the account of the assessee. Thus, despite MAT credit standing to the account of the assessee, the liability of the assessee gets increased instead of it getting reduced. Lastly, it is immaterial that the relevant form prescribed under Income Tax Rules, at the relevant time (i.e. before 1.4.2007), provided for set off of MAT credit balance against the amount of tax plus interest i.e. after the computation of interest under Section 234B. This was directly contrary to a plain reading of Section 115JAA(4). Further, a form prescribed under the rules can never have any effect on the interpretation or operation of the parent statute. Based on the above reasons, the Hon ble Supreme Court held that there is no merit in the civil appeals filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety per cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate of [one per cent] for every month or part of a month comprised in the period from the 1st day of April next following such financial year [to the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount] equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. Explanation 1. -In this section, assessed tax means the tax on the total income determined under sub-section (1) of section 143 and where a regular assessment is made, the tax on the total income determined under such regular assessment as reduced by the amount of,- (i) any tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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