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2013 (3) TMI 643 - AT - Income Tax
Applicability of Section 115JB on banks - The assessee, a banking company has a branch office in Bangkok. It was contended that Sec.115JB applies only where the assessee is required to maintain accounts as per schedule VI of Companies act. As the banks prepare accounts in accordance with the Banking Regulation Act, 115JB cannot be applied to the banks. - HELD THAT: - Post Nationalisation, after the enactment of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 the status of banks has changed. In view of amendment in the section 115JB by the Finance Act, 2012, the provisions of section 115JB are applicable to the banks as well from assessment year 2013-14.
Export Credit Insurance for Banks- The DR submitted that no evidence was furnished before the AO for claiming the export credit by the assessee. On the other hand, the learned AR said that there is no provision to pay interest by ECGC. The AO has made additions based on mere presumption. - HELD THAT: - Under clause (vii) of the salient features of the Export Credit Insurance for banks, - “ interest payable by the exporter on the packing credit advances will not be eligible for cover”. So there is no provision to pay interest by ECGC. - CIT(A) rightly deleted the additions.
Levy of interest on excess refund u/s 234D.- Regular assessment order u/s 143(3) was passed on 30.03.2006. The D.R. submitted that interest u/s 234D has been introduced with effect from 1.6.2003 without specific reference to any assessment year. The CIT(A) ought to have seen that interest u/s 234D is leviable on or after 2.6.2003 irrespective of the assessment year. - HELD THAT: - Section 234D is applicable on the date on which regular assessment order has been passed and not the year of assessment that falls for consideration. In the present case, regular assessment order was passed on 30.03.2006, the provisions of section 234D came into operation prior to the completion of regular assessment, therefore, will apply to assessee as well.