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2020 (1) TMI 1100 - HC - Income TaxAddition u/s 14A r.w.r. 8D - prospectively of rule 8D - HELD THAT:- Issue raised therein has been concluded by the Supreme Court in favour of the assessee and against the revenue in the case of Commissioner of Income Tax- 5 Mumbai vs. Essar Teleholdings Ltd. [2018 (2) TMI 115 - SUPREME COURT] wherein it has been held that Rule 8D of the Income Tax Rules, 1962 is prospective in operation and cannot be applied to any assessment year prior to assessment year 2008-09. In so far the present appeal is concerned, the assessment year in question is 2007-08. Therefore, in view of the decision of the Supreme Court as above, provisions of Rule 8D will not be applicable. Consequently, question No.(a) does not arise. MAT applicability to assessee bank u/s 115JB - HELD THAT:- Issue covered by the decision of this Court in Commissioner of Income Tax- LTU vs. Union of India [2019 (5) TMI 355 - BOMBAY HIGH COURT] wherein held sub-section 115JB as it stood prior to its amendment by virtue of Finance Act, 2012, would not be applicable to a banking company. We answer the question No.2 in favour of the assessee and against the revenue.
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