COMMISSIONER OF INCOME TAX CHENNAI vs TULSYAN NEC LTD.

The Supreme Court addressed the issue of whether the Minimum Alternate Tax (MAT) credit under Section 115JAA of the Income Tax Act should be set off against the tax payable before calculating the tax liability. The Court held that MAT credit is to be set off against the tax payable, thereby establishing that the tax liability must be computed after considering the MAT credit. This ruling clarifies the interpretation of Section 115JAA, ensuring that taxpayers can benefit from the MAT credit in their tax calculations.