Commissioner Of Income Tax-Iii, Coimbatore v. M/S Mani Spinning Mills P.ltd

Dated : 30.04.2009 Coram : THE HONOURABLE MR.JUSTICE K.RAVIRAJA PANDIAN and THE HONOURABLE MR.JUSTICE M.M.SUNDRESH Tax Case (Appeal)No.343 of 2009 Commissioner of Income Tax-III,Coimbatore. ... Appellant v. M/s Mani Spinning Mills P.Ltd.,25, Jothi Theatre Road,Tirupur. ... Respondent Tax Case Appeal filed under section 260A of the Income Tax Act, 1961 against the order of theIncome Tax Appellate Tribunal, Chennai Bench 'D', dated 15.02.2005 passed in ITA No.4 (Mds.)2002. For appellant : Mr.J.Naresh Kumar. JUDGMENT (Judgment of the Court was delivered byK.RAVIRAJA PANDIAN, J.) The appeal at the instance of the revenue is filed against the order of the Income Tax AppellateTribunal, Chennai 'D' Bench, Chennai, dated 15.02.2005 passed in ITA No.4 (Mds.)/2002 relating tothe assessment year 1998-99. 2. The assessment of the assessee company was completed under Section 143 (3) of the Income TaxAct on 22.02.1999 on a total income of Rs.39,83,430/-. On appeal, the Commissioner of Income Tax(Appeals) passed an order by reducing the total income to Rs.31,58,950/-. The Assessing Officerpassed an order under Section 154 on 19.01.2000 since there was an omission to charge interestunder Section 234B and 234C. In the rectification order under Section 154, interest under Sections234B and 234C was levied and the MAT credit which is available in favour of the assessee was adjusted after the interest has been calculated. On appeal, the Commissioner of Tax (Appeals), afterhearing the parties, directed the assessment officer to compute the interest taking intoconsideration the MAT credit for which assessee is entitled. The revenue filed an appeal before theIncome Tax Appellate Tribunal. The Tribunal referring its own decision, confirmed the order of theCommissioner of Tax (Appeals). The correctness of the same is put in issue in this appeal byformulating the following question of law:- " Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal wasright in holding that for purposes of computation of interest under Section 234B and 234C, taxcredit under Section 115JAA has to be first set off against the tax payable and the interest under thesaid sections have to be computed after taking into consideration the tax credit carried forwardunder Section 115JAA even though there is no legal sanction for such adjustment under Sections 208to 211, under Sections 234B or 234C or under any other provisions of the Act ? 3. We heard the arguments of the learned counsel for the appellant and perused the materialsavailable on record. 4. The very same issue has been considered by the Division Bench of this Court in which one of us(K.Raviraja Pandian, J) was a party in T.C.A.Nos.887 of 2004 etc. batch on 09.04.2009 and held thequestion of law against the revenue in favour of the assessee to the effect that the interest under thesaid two provisions have to be calculated after giving effect to the MAT credit. The said judgmentsquarely covers the question of law framed in this appeal. Hence, as the question of law has alreadybeen decided by this Court against the revenue, the appeal deserves to be dismissed andaccordingly, dismissed. sbi To 1. The Commissioner of Income Tax Coimbatore. 2. The Income Tax Appellate Tribunal,Chennai 'D' Bench,Chennai