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2021 (8) TMI 582 - AT - Income TaxRectification u/s 154 - MAT applicability u/s 115JB on banking companies - establishing / determining the MAT credit and application of the unabsorbed depreciation / brought forward losses for the purpose of computation of tax as per MAT - mistake of carry forward of unabsorbed depreciation - HELD THAT:- As per the Explanation–3 to section 115JB of the Act considering huge loss carried forward by the assessee and in few assessment years the assessee has earned net profit, the assessee is allowed to adjust the above said profits only to the extent of unabsorbed depreciation or business loss whichever is less. Keeping the Explanation in mind, in our considered view, the computation determined by the Assessing Officer is just and proper. However, we notice that the assessee is a scheduled bank and as per the decision of the Hon'ble Jurisdictional High Court in Union Bank of India [2019 (5) TMI 355 - BOMBAY HIGH COURT] held that the provisions of section 115JB of the Act as it stood prior to its amendment by virtue of Finance Act, 2012, would not be applicable to a banking company. We are inclined to allow the grounds of appeal raised by the assessee even though the calculation submitted by the assessee is not proper. However, the provisions of section 115JB of the Act are not applicable to a scheduled bank. Consequently, we set aside the impugned order passed by the learned CIT(A) and allow the grounds of appeal raised by the assessee.
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