IN THE HIGH COURT OF DELHI AT NEW DELHI 
 . 
   ITA 532/2013  
 . 
 THE COMMISSIONER OF INCOME TAX -V..... Appellant 
 . 
 Through Mr. Sanjeev Sabharwal, Sr. Standing 
 Counsel. 
 . 
 . 
 . 
 versus 
 . 
 . 
 . 
 M/S NATIONAL FERTILIZERS LIMITED ..... Respondent 
 . 
 Through Mr. Ved Jain, Advocate. 
 . 
 . 
 . 
 CORAM: 
 . 
 HON'BLE MR. JUSTICE SANJIV KHANNA 
 . 
 HON'BLE MR. JUSTICE SANJEEV SACHDEVA 
 . 
 . 
 . 
 O R D E R 
 . 
    26.11.2013 
 . 
 . 
 . 
 Revenue by this appeal under Section 260A of the Income Tax Act, 
 1961 (Act) impugns order dated 26th March, 2013 passed by the Income Tax 
 Appellate Tribunal in the case of National Fertilizers Limited in respect 
 of assessment year 2003-04 on the question of charging of interest under 
 Section 234B and C on the MAT credit under Section 115JAA of the Act. 
 . 
 The issue is covered against the Revenue and in favour of the 
 assessee by decision of the Supreme Court in Commissioner of Income Tax 
 Vs. Tulsyan Nec Ltd. (2011) 330 ITR 226 wherein it has been held as 
 under:- 
 . 
 ?9.?We have discussed hereinabove the scheme of Section 115-JA(1) 
 and Section 115-JAA. The entire scheme of Sections 115-JA(1) and 115-JAA 
 shows that if an assessee is entitled to a tax credit as a consequence of 
 the assessee making payment of tax under Section 115-JA(1) in the year 
 one, then, the set-off of such tax credit follows as a matter of course 
 once the conditions mentioned in Section 115-JAA are fulfilled and the 
 grant of such credit is not dependent upon determination by the AO save 
 and except that the ultimate amount of tax credit to be allowed will be 
 dependent upon the final determination of the total income for the first 
 assessment year. There is no provision under Section 115-JAA which 
 postpones the right of the assessee to claim set-off to the determination 
 of the total income by the AO in the first assessment year. 
 Entitlement/right to claim set-off is different from the 
 quantum/quantification of that right. Entitlement of MAT credit is not 
 . 
 dependent upon any action taken by the Department. However, quantum of tax credit will depend upon the assessment framed by the AO. Thus, the 
 right to set-off arises as a result of the payment of tax under Section 
 115-JA(1) although quantification of that right depends upon the ultimate 
 determination of total income for the first assessment year.  Further, an 
 assessee has a right to take into account the set-off even while 
 estimating its liability to pay advance tax on the ?current income? in 
 accordance with the provisions of Chapter XVII(C). Although Section 
 209(1)(d) does not make any specific provision either before or after the 
 amendments carried out by the Finance Act, 2006 to the effect that an 
 assessee is entitled to set off the tax credit that would be available in 
 terms of Section 115-JAA(1) while computing the quantum of advance tax 
 that is to be paid, it must follow that an assessee would be entitled to 
 do so otherwise it results in absurdity viz. that an assessee pays 
 advance tax on the footing that it is not entitled (when in fact it is so 
 entitled as discussed above) to the credit and thereafter claims a refund 
 of such advance tax paid as a consequence of the set-off. Moreover, when 
 an AO makes an intimation under Section 143(1) he accepts the return 
 filed by the assessee to which the AO may make an adjustment and 
 consequently makes a demand or refund. Section 143(1) provides that where 
 a return is made under Section 139 and if any tax or interest is found 
 due on the basis of such return after adjustment of any TDS, any advance 
 tax, any tax paid on self-assessment and any amount paid otherwise by way 
 of tax or interest, then, without prejudice to provisions of sub-section 
 (2), an intimation will be sent to the assessee specifying the amount so 
 payable and such intimation shall be deemed to be a notice of demand 
 under Section 156 and all the provisions of the Act shall apply thereto. 
 This section itself makes it clear that whilst the AO determines the tax 
 payable he has to give credit for all taxes paid either by way of 
 deduction at source, advance tax, self-assessment tax or tax paid 
 otherwise which would include or which cannot exclude tax credit under 
 Section 115-JAA(1).? 
 . 
 . 
 . 
 In view of the aforesaid position, the present appeal is dismissed. 
 . 
 . 
 . 
 SANJIV KHANNA, J. 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 . 
 SANJEEV SACHDEVA, J. 
 . 
 NOVEMBER 26, 2013 
 . 
 NA 
 . 
 . 
 . 
 $ 53 
 .