JUDGMENT

S. H. KAPADIA, CJI

1. Leave granted.

2. The issue involved in this batch of civil appeals, by special leave, filed by the Department relates to the question whether MAT credit admissible in terms of Section 115JAA has to be set off against the tax payable (assessed tax) before calculating interest under Sections 234A, B and C of the Income Tax Act, 1961 (the Act).

3. At the outset, it may be stated that there is no dispute in regard to eligibility of the assessee for set off of tax paid under Section 115JA. The dispute is only in regard to priority of adjustment for the MAT credit.

4. To answer the above, we set hereinbelow the provisions of Sections 115JA and 115JAA, which read as under:

"Deemed income relating to certain companies.

115JA. (1) Notwithstanding anything contained in any other provisions of this Act, where in the case of an assessee, being a company, the total income, as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 1997 but before the 1st day of April, 2001 (hereafter in this section referred to as the relevant previous year) is less than thirty per cent of its book profit,