Allowability of Interest U/s. 244A on MAT credit

ACIT Vs Bank Of India (ITAT Mumbai)- As per the provisions of section 115JAA(2), the amount of tax credit of MAT to be carried forward is determined and it is not provided therein that first the taxes paid are to be adjusted and then credit of MAT is to be given. In the case of Chemplast Sanmar, cited supra, the Chennai Bench of the Tribunal has held while deciding he issue u/s.234B and 234C that the tax credit u/s.115JA(2) is advance tax retained by the Department for being set off against the tax liability of future years. We are in agreement with the ld. CIT that the assessee is entitled for interest u/s.244A on the refund given to it. We are also of the view that it was a mistake which could be rectified u/s. 154. So from this is is clear that MAT credit has to be given right at the beginning and if ultimately the calculation leads to a refund, then such interest has to be paid u/s.244A.

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI ‘H’ BENCH

BEFORE SHRI N.VASUDEVAN, JUDICIAL MEMBER &

SHRI T.R. SOOD, ACCOUNTANT MEMBER

I.T.A.NO. 4102/Mum/2010

 A.Y. 1999- 2000

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