The Substantial Question Of Law Arising For Consideration In This Appeal Has Been Answered Against The Revenue By The Supreme Court In The Case Of Commissioner v. In The Light Of The Above, This Appeal Filed By The Revenue Is Dismissed And The Substantial Question Of Law Is Answered Against The Revenue. No Costs

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Tax Case Appeal No.91 of 2009 The Commissioner of Income-tax,Coimbatore .... Appellant -vs- M/s.Bannari Amman Spinning Mills Ltd.,252, Mettupalayam Road,Coimbatore-43 ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalChennai 'D' Bench, dated 25.05.2006 in ITA No.3361/Mds/2004, forthe Assessment year 2001-02 against the order of theCommissioner of Income Tax Appeals-1, Coimbatore, dated8.10.2004 in PA.NO.AAACB8513A in the assessment year 2001-02 against the order of the Additinal Commissioner of IncomeTax Range/ Coimbatore dated 17.3.2004 in PAN/GIR No. /B10 inthe assessment year 2001-02.For Appellant: Mr.T.R.Senthilkumar Mrs.K.G.Usha Rani For Respondent : R.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan JUDGMENT [Judgement of the Court was delivered by T.S.Sivagnanam, J.]This appeal by the Revenue, filed under Section 260-Aof the Income Tax Act, 1961 (The 'Act' for brevity), is directedagainst the order passed by the Income Tax Appellate Tribunal,Madras 'D' Bench, in ITA No.3361/Mds/2004, for the Assessmentyear 2001-02. 2.The Appeal has been admitted, by order dated 05.03.2009, https://hcservices.ecourts.gov.in/hcservices/ on the following Substantial Question of Law: "Whether on the facts and in thecircumstances of the case, the AppellateTribunal was right in law in holding that thequestion of payment of interest to the assesseewould arise only if set off MAT credit isallowed against the advance tax payment and itshould be treated on par with the Advance tax?” 3.Heard Mr.T.R.Senthil Kumar and Mrs.K.G.Usha Rani, thelearned counsels for the appellant and Mr.R.Venkatanarayan forM/s.Subbarama Aiyar Padmanabhan, the learned Senior StandingCounsel for the respondent. 4.The Assessing Officer, while completing the assessmentunder Section 143(3) of the Act, vide order dated 17.3.2004, hasgiven credit for brought forward MAT credit amounting toRs.59,11,827/-, after calculating interest under Section 234-Band 234-C of the Act. The correctness of this order waschallenged by the assessee by filing appeal before the Tribunal.The Tribunal followed the decision in the case of ChemplastSanmar (reported in 83 TTJ 427) and directed that broughtforward MAT credit available is to be treated on par with theadvance tax and advance TDS and the Assessing Officer shouldcalculate interest under Section 234B and 234C of the Act, aftergiving credit for the brought forward MAT credit. Challengingthe same, the Revenue is before us. 5.The Substantial Question of Law arising for considerationin this appeal has been answered against the Revenue by theSupreme Court in the case of Commissioner of Income Tax vs.Tulsyan Nec Ltd.,[(2011) 330 ITR 0226]. The Hon'ble SupremeCourt confirmed the decision in the case of CHEMPLAST SANMAR LTD[(2009) 22 DTR (Mad) 241]. The Hon'ble Supreme Court held thatthe MAT Credit admissible in terms of Section 115JAA has to beset off against the tax payable (assessed tax) beforecalculating interest under Sections 234A, 234B and 234C of theAct. In the light of the above, this appeal filed by the Revenueis dismissed and the Substantial Question of Law is answeredagainst the Revenue. No costs. Sd/- Assistant Registrar(CO) //True Copy// Sub Assistant Registrar msk To 1.The Income Tax Appellate Tribunal Madras 'D' Bench, Rajaji Bhavan, Besant Nagar, Chennai.2. The Commissioner of Income GTax Appeals-1, Coimbatore.3. The Additional Commissioner of Income Tax Range-I, Coimbatore. + 1 cc to Mr. Subbarayo Aiyar, Advocate Sr.78124+ 1 cc to Mr. Senthilkumar, Advocate Sr.78122T.C.A.No.91 of 2009MG(CO)EU(07/12/2018)