AI Drafter 
TaxTMI 
TaxTMI 
2016 (4) TMI 1126
X X X X Extracts X X X X
X X X X Extracts X X X X
.... income of Rs. 11,38,79,120/- under normal provisions and Book Profit of Rs. 11,95,97,648/- under section 115JB of the Income Tax Act, 1961 (in short 'the Act'). Subsequently, a revised return was filed wherein income of Rs. 7,83,83,421/- was declared under normal provisions of the Act. The case was taken for scrutiny and the assessment was completed under section 143(3) of the Act vide order dated 22.03.2004 wherein the total income under the normal provisions was assessed at Rs. 13,66,33,390/-. On appeal, the learned CIT(A) allowed the assessee relief vide order dated 21.02.2005 whereby the assessee's income was re-computed at Rs. 6,63,87,460/-. 2.2 Subsequently, proceedings under section 147 of the Act were initiated for takin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d in law, the learned CIT(A) erred in following the decision of the CIT vs. Jindal Exports Ltd. (314 ITR 137 (Del) wherein the Hon'ble Delhi High Court had rightly held that credit u/s. 115JAA should be given before charging of interest 234B & 234C, for which specific provisions is in these sections to allow credit of same before charging interest u/s. 234B & 234C, and no such provision is prescribed for allowed credit. 4. Ground No. 1 4.1 In this ground, the Revenue contends that the learned CIT(A) erred in allowing interest under section 244A of the Act on MAT credits, i.e. on taxes paid, under section 115JA of the Act without considering the proviso to subsection 2 to section 115JAA which provides that no interest shall be paya....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he proviso to section 115JAA, but once the credit is given and there is still tax payable and further credit is given to the TDS and advance tax, then refund, if any can be said to have been originating from payment of advance tax or credit of TDS and the assessee in this case becomes entitled to interest in terms to section 244A of the Act. In drawing this conclusion reliance is placed on the decision of the order of the ITAT Delhi Bench in the case of DCIT vs. Bharat Aluminum Ltd. pronounced on 19.02.2010, copy of which order is placed on record. 8. On the basis of the above discussion, it is held that the MAT credit be allowed before giving effect to TDS and advance tax paid and interest under s. 244A is subject to the findings ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... jurisdictional High Court in the case of APAR Industries Ltd. (supra) to hold that credit for brought forward MAT is to be allowed from the gross demand before charging interest under section 234A and 234B of the Act. It was also submitted that the decisions of the Hon'ble Delhi High Court in the case of Jindal Exports Ltd. (2009) 314 ITR 137 (Del), referred to and contested in Revenue's ground No. 2, has been affirmed by the Hon'ble Apex Court in the case of CIT vs. Tulsyan NEC Ltd. (2011) 330 ITR 226 (SC). 5.3.1 We have heard the rival contentions and perused and carefully considered the material on record; including the judicial decisions cited. We find that the learned CIT(A) at para 6 of the impugned order, following the de....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to which the assessee was entitled under s. 115JAA could not ignored in determining the liability to pay interest under s. 234B. It has been held by the Hon'ble High Court that an amendment which is intended to remove an ambiguity in the interpretation of a section must of necessity be regarded as clarificatory. If it is clarificatory in nature, it is expressive of a position in law which Parliament intended to hold the field at all material times and must consequently be regarded as operating with retrospective effect. Holding that Explanation (1) to section 234B brought about by the Finance Act 2006 is clarificatory or curative in nature, the Hon'ble High Court has held that the credit for brought forward MAT is to given from gro....