2014 (3) TMI 387

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.... on its total income and tax payable by it under the provisions of Section 115JB of the Act after taking into account the surcharge payable on such taxes and then consider the difference as the amount of brought forward tax credit available for set-off and therefore levy interest u/Ss 234-A, 234-B and 234-C of the Act?" 2. This question of law is arising in the present appeal, preferred by the revenue against the order dated 30.4.2007 passed by the Income Tax Appellate Tribunal, Bangalore Bench 'A' in ITA No.1808/Bang/2005 . By its order, the Tribunal allowed the appeal filed by the revenue to the extent indicated in the said order. The appeal before the Tribunal was directed against the order dated 29.8.2005 passed by the Commis....

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.... that due to omission on one hand MAT credit was available for set off for five years under Section 115JAA but the same was not available 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 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 cave....

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....der passed by the Tribunal, held that MAT credit should be given before charging interest under Sections 234B and 234C of the Income Tax Act (for short, 'the Act'). In this case, the Division Bench, after considering the judgment of the Hon'ble Supreme Court in 'TULSYAN' in the concluding paragraph observed thus:         "In view of the aforesaid discussion and the law laid down by the Apex Court, it is clear from Explanation-I which was amended with effect from 01.04.2007, as there was no specific words excluding the MAT credit, the position was the same. It is because of the stand taken by the Department in refusing to give that credit, the Parliament had to step in and has express....