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2018 (8) TMI 1363 - ITAT KOLKATAMinimum alternate Tax (MAT) u/s 115JB - applicability on assessee Corporation. - The assessee corporation was constituted with three participating government namely, Union government, State Govt. of Bihar (now Govt. of Jharkhand) and State Govt. of West Bengal. - Damodar Valley Corporation Act, 1948 - Held that:- the accounts were prepared inconformity with the provisions of the DVC Act, 1948 and annual financial statement were prepared in the form prescribed under the said Act even though the format approved by the Government of India u/s. 47 of the DVC Act, 1948 was on the lines of Schedule VI of the Companies Act, 1956. On perusal of the provisions of section 115JB of the Act as were in force in the relevant year, it is noted that provisions of subsection (2B) of section 115JB of the Act clearly clarified that the said section is applicable to every assessee being a company to which proviso to sub-section (2) of section 211 of Companies Act, 1956 is applicable. We, however, find that assessee corporation though assessed in the status of a company was not a company within the meaning of Companies Act, 1956 and, therefore, the proviso to sec. 211(2) of the Companies Act, 1956 was not applicable. - the provisions of section 115JB of the Act imposing tax liability on the book profit were not applicable. Further, as per the specific provisions of section 115JC of the Act, however, the assessee did not have any alternate minimum tax liability. - Decided against the revenue. Diallowance u/s 14A - assessee derived exempt income in the form of interest from CPF investment, interest from tax free RBI Bond and dividend of shares of Power Trading Corporation and Bokaro Power Supply Corporation Ltd. - Held that:- following the decision for the earlier years, no disallowance can be made - Decided against the revenue.
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