TaxTMI 
TaxTMI 
2011 (1) TMI 1174
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....re the same, they are taken up together for consideration and disposed off by this common order. 2. The assessee is carrying on business in the manufacture of leather garments. The assessee has filed a return of income for each assessment year within the time stipulated. The Assessing Officer levied the interest under Section 234B and 234C of the Income Tax Act (for short hereinafter referred to as the 'Act') without giving credit of MAT under Section 115JAA of the Art and passed the assessment orders. Aggrieved by the said assessment orders, the assessee preferred an appeal to the Commissioner of Income Tax (Appeals-I), Bangalore. The Appellate Commissioner held that as per the provisions of Section 115JAA, MAT Credit should be all....
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....g payment of tax under Section 115JA(1) in the year one, then, the set off of such tax credit follows as a matter of course once the conditions mentioned in Section 115JAA are fulfilled and the grant of such credit is not dependent upon determination by the Assessing Officer save and except that the ultimate amount of tax credit to be allowed will be dependent upon the final determination of the total income for the first assessment year. There is no provision under Section 115JAA which postpones the right of the assessee to claim set off to the determination of the total income by the Assessing Officer in the first assessment year. Entitlement/right to claim set off is different from the quantum/quantification of that right. Entitlement of....
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....and if any tax or interest is found due on the basis of such return after adjustment of any TDS, any advance tax, any tax paid on self assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to provisions of sub-section (2), an intimation will be sent to the assessee specifying the amount to payable and such intimation shall be deemed to be a notice of demand under Section 156 and all the provisions of the Act shall apply thereto. This, section itself makes it clear that whilst the Assessing Officer determines the tax payable he has to give credit for all taxes paid either by way of deduction at source, advance tax, self assessment tax or tax paid otherwise which would include or which cannot exclude tax ....
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....sk as in case it is ultimately found that the amount of tax credit availed was not lawfully available, the assessee would be exposed to levy of interest under Section 234B on the shortfall in the payment of advance tax. We reiterate that we cannot accept the case of the Department because it would mean that even if the assessee does not have to pay advance tax in the current year, because of his brought forward MAT credit balance, he would nevertheless be required to pay advance tax, ?nd if he fails, interest under Section 234B 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 ....