2010 (9) TMI 18 - ITAT, MUMBAI

Re-opening of an assessment – non application of provisions of MAT (minimum alternate tax) by the assessee – assessee contended that provisions of MAT are not applicable to it and therefore assessment cannot be reopened – Banking company – Held that: - The provisions of Section 115 JB can only come into play when the assessee is required to prepare its profit and loss account in accordance with the provisions of Part II and III of Schedule VI to the Companies Act . The starting point of computation of minimum alternate tax under section 115 JB is the result shown by such a profit and loss account . In the case of banking companies, however, the provisions of Schedule VI are not applicable in view of exemption set out under proviso to Section 211 (2) of the Companies Act . The final accounts of the banking companies are required to be prepared in accordance with the provisions of the Banking Regulation Act . The provisions of Section 115 JB cannot thus be applied to the case of a banking company.