MAT credit needs to be taken into consideration before calculating interest u/s 234B and the said amendment is retrospective in nature:

S.234B provides for interest for defaults in payment of advance tax. While calculating “Assessed tax” for the purpose of calculating interest u/s 234B, the amount of “MAT credit” allowed to be set off in accordance with the provisions of S.115JAA shall be reduced from the same. The said amendment was effective from 01/04/2007. AO was of the view that the said amendment was “Prospective” in nature and hence he didn’t consider the MAT credit while calculating interest u/s 234B. It was held by the Hon’ble High Court that the said amendment was for the purpose of removal of ambiguity and needs to be held as “Retrospective” in nature. Revenue’s appeal was dismissed accordingly.

[CCIT Vs. GUJARAT MITRA PVT. LTD. - TAX APPEAL NO.274 of 2012 - GHC]