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2014 (2) TMI 1071 - AT - Income TaxReopening of assessment u/s 147 of the Act - Held that:- The assessment was reopened within four years and there is specific findings that there was under assessment of income in the case of the assessee - This is nothing on record to suggest that the reopening was due to change of opinion – thus, the order of the CIT(Appeals) on this issue is confirmed – Decided against Assessee. Application of provisions of section 115JB of the Act - Levy of minimum alternate tax – Held that:- As decided in assessee’s own case for the previous year, it has been held that the provisions of s. 115JB can only come into play when the assessee is required to prepare its P&L a/c in accordance with the provisions of Parts II and III of Sch. VI to the Companies Act - The starting point of computation of MAT under s. 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 - the provisions of Sec.115JB could not be applied on the assessee – Decided in favour of Assessee. Interest on securities – whether the interest on securities are to be taxed on due basis or on accrual basis - Held that:- The decision in Tamilnadu Mercantile Bank Limited [2007 (1) TMI 128 - MADRAS High Court ] followed - the interest on securities can be taxed only on due basis - When the principal amount involved in the instrument itself is redeemable only on due date, there is no reason to hold that the interest element would be generated on accrual basis - The interest also goes along with the principal amount in the case of securities – Decided against Revenue.
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