COMMISSIONER OF INCOME TAX Vs. NADAR PRESS

JUDGEMENT

(1.) The revenue is on appeal against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench, Chennai, dated 02.06.2006 passed in ITA Nos. 1774/Mds/2005 for the assessment year 2002-03.

(2.) The assessee filed its return of income for the assessment years 2002-03. The assessing officer, in the proceedings under Section 143(1)(a) of the Income Tax Act, allowed the MAT credit and refund was arrived. In the proceedings under Section 143(3) of the Act MAT credit was not granted and the refund was determined as excess. The assessee appealed against the order of assessment to the Commissioner of Income Tax (Appeals), who allowed the appeal following the decision of the Tribunal in Chemplast Sanmar Ltd.'s case and the assessing officer was directed to allow the MAT credit as per intimation under Section 143(1)(a) of the Act. The revenue carried the matter to the Tribunal. The Tribunal following its earlier order in the case of M/s. Chemplast Sanmar Ltd., held that the assessee is entitled to adjust the MAT credit first before charging of interest under Section 234B and 234C of the Act. The revenue is thus before us in this appeal.

(3.) The appeal was admitted by this Court on the following substantial questions of law: