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2011 (8) TMI 1112 - AT - Income TaxMAT Provisions of Section 115JB - Applicable on banks or not? - CIT(A) rejected the claim that the provisions of section 115JB is not applicable to the assessee bank as the same is not a company under the Companies Act, 1956 as held in MAHARASHTRA STATE ELECTRICITY BOARD. VERSUS JOINT COMMISSIONER OF INCOME TAX. [2001 (8) TMI 310 - ITAT MUMBAI] - HELD THAT:- We find that recently the Mumbai Bench of the Tribunal in the case of KRUNG THAI BANK PCL VERSUS JOINT DIRECTOR OF INCOME TAX - INTERNATIONAL TAXATION, MUMBAI [2010 (9) TMI 18 - ITAT, MUMBAI], held that the starting point of computation of MAT under sec. 115JB is the result shown by such a P&L a/c. In the case of banking companies, however, the provisions of Sch. VI are not applicable in view of exemption set out under proviso to s. 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 s. 115JB cannot thus be applied to the case of a banking company. Further, in the cases of RE. PRAXAIR PACIFIC LIMITED [2010 (7) TMI 51 - AUTHORITY FOR ADVANCE RULINGS] and RE. THE TIMKEN COMPANY [2010 (7) TMI 50 - AUTHORITY FOR ADVANCE RULINGS], it was held that MAT provisions are applicable to a foreign company that does not have a physical presence in India, as such, companies are not required to prepare its accounts as per Companies Act. Therefore, respectfully following the above cited decisions of the Tribunal, we set aside the orders of the lower authorities and allow the appeal of the assessee on the ground that the bank is not required to prepare its profit and loss account in accordance with the provisions of Part II and Part III of Schedule VI to the Companies Act and therefore, the provisions of MAT in section 115JB is not applicable to the assessee - Decision in favour of Assessee.
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