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2018 (6) TMI 281 - AT - Income TaxExemption from the provisions of Section 115JB being a sick company - MAT provision applicability - Reopening of assessment - Held that:- Issuance of certificate u/s. 17 of the SICA does not arise as the Board stand dissolved consequent to repeal of the Act. So, the insistence of AO and the CIT(A) for a certificate under that Act is not proper. Since the provisions of Section 115JB have not been amended, to that extent the repealed SICA Act is applicable so it has to be applied. Therefore, it is to be considered that assessee is covered by Section 17 of SICA and therefore, the company is exempt from the provisions of Section 115JB, being a sick company. This contention of assessee is accepted. The amount added to the P&L A/c being capital receipt should not have been brought to tax there are Co-ordinate Bench decisions on the issue having held that the amount of capital receipt which otherwise not taxable cannot be taxed u/s 115JB. The recent one is in the case of M/s. JSW Steel Limited Vs. ACIT [2017 (4) TMI 47 - ITAT MUMBAI] relied upon by assessee. There is merit in assessee’s contention but that becomes academic only as there are contradicting views on this subject and we need not go into that issue for the simple reason that assessee being a sick company, provisions of Section 115JB are not applicable. The Coordinate Bench has already held so in earlier proceedings. Why AO has to reopen the assessment is not understandable. Considering the facts of the case, we hold that assessee-company is not covered by the provisions of Section 115JB and therefore, the grounds raised by assessee are accordingly allowed.
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