TMI Blog2018 (10) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... - Above referred to substantial questions of law have been answered against the Revenue by the Hon'ble Supreme Court in the case of CIT V. Tulsyan NEC Ltd [2010 (12) TMI 23 - SUPREME COURT OF INDIA] the right to set off arises as a result of the payment of tax under Section 115JA(1) although quantification of that right depends upon the ultimate determination of total income for the first assessment year. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal issue was considered by the Hon'ble Supreme Court in the case of Ajanta Pharma Ltd. v. Commissioner of Income Tax reported in 2010 (327) ITR 0305. Furthermore, in the impugned order passed by the Tribunal in the said appeal, the decision of the Special Bench in the case of DCIT v. Syncome Formulations (I) Ltd. and others reported in 292 ITR 144 (AT) has been relied on. The said decision has been approved by the Hon'ble Supreme Court in the case of Commissioner of Income Tax v. Bhari informations Technology System (P) Limited reported in 2012 (340) ITR 0593 . The operative portion of the judgment dated 30.07.2018 reads as follows : 5. The legal issue was considered by the Hon'ble Supreme Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, is answered against the Revenue and in favour of the assessee. 7. Accordingly, this Tax Case Appeal stands dismissed. No costs. T.C.A.Nos.1352 and 1353 of 2008 : 8. These appeals filed by the Revenue are directed against the order passed by the Income Tax Appellate Tribunal Bench C , Chennai, dated 12.10.2007 in ITA Nos.41 and 42/Mds/2006 for the Assessment Years 2000-2001 and 2001-2002. 9. These appeals have been admitted vide order dated 28.08.2008 on the following substantial questions of law: 1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that MAT credit is to be set off from the tax payable before setting off the Tax Deducted at Source and Advance Tax paid ? 2. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable for set off while calculating advance tax. This dichotomy was more spelt out because section 115JAA did not provide for payment of interest on the MAT credit. To avoid this situation, Parliament amended Explanation 1 to section 234B by the Finance Act, 2006 with effect from April 1, 2007 to provide along with tax deducted or collected at source, the MAT credit under section 115JAA also to be excluded while calculating assessed tax. From the above, it is evident that any tax paid in advance/pre-assessed tax paid can be taken into account in computing the tax payable subject to one caveat, viz., that where the assessee on the basis of self-computation unilaterally claims set off or the MAT credit, the assessee does so at it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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