COMMISSIONER OF INCOME TAX Vs. LAMBODHARA TEXTILES LTD

JUDGEMENT

(1.) THE appeal has been preferred by the revenue against the order of the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated 28.9.2006 passed in ITA No.1107/Mds/2006 for the assessment year 2003-2004.

(2.) THE material facts culled out from the statement of facts in the memorandum of grounds of appeal are as follows:- THE assessee filed a return of income on 28.11.2003 returning a total income of Rs.53,91,810/-. THE assessee had furnished audited profit and loss account, balance sheet, tax audit report, proof of repaid taxes and other relevant enclosures and the return was processed under Section 143(1) on 2.3.2004. THEreafter intimation under Section 143(1) was served and a demand was determined at Rs.7,37,836/- after giving credit for prepaid taxes. THE demand arose on account of the fact that no credit was given to the MAT paid to the assessment year 2000-2001. THEreafter the case was selected for scrutiny and notice under Section 143(2) dated 21.10.2004 was served on the assessee. THE assessing officer had charged interest under Section 234(B) and 234(C) after giving credit for MAT. Aggrieved by the order of the assessing officer on the method of computation of MAT credit, the assessee filed appeal before the Commissioner of Income-tax (Appeals), who allowed the appeal. Aggrieved by the same, the Department filed appeal before the Tribunal, which following its own judgment in the case of Chemplast Sanmar Limited held that the assessee was entitled to adjust the MAT credit first before interest under Section 234(B) and 234(C) is charged. Aggrieved by the order of the Tribunal, the revenue has filed the present appeal by formulating the following questions of law:-

(3.) IN respect of the other questions of law, the Division Bench has observed as follows:-