2011 (6) TMI 125

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....(Per : HONOURABLE MS.JUSTICE HARSHA DEVANI)   (1) The appellant-revenue in this appeal under section 260A of the Income Tax Act, 1961 (the Act) has challenged the order dated 08.02.2006 made by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A' in I.T.A. No.2092/Ahd/2005 for Assessment Year 2001-02.   (2) While admitting the appeal, this court had, vide order dated 04.05.2009, ....

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.... In Commissioner of Income Tax v. Tulsyan Nec Ltd. (supra), the apex court, while considering a similar issue, has held as follows:   "10. The issue which crops up for decision is - how should the advance tax be calculated when the Company has MAT credit?   11. To answer, we need to look at Section 234B. Under that section, "assessed tax" means the tax on the total income determine....

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....ded Explanation 1 to Section 234B by Finance Act, 2006 w.e.f. 1.4.2007 to provide along with tax deducted or collected at source, MAT credit under Section 115JAA also to be excluded while calculating assessed tax.   12. 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 whe....

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....ent 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 ass....