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2020 (11) TMI 486 - HC - Income TaxMAT computations u/s 115JB on banking companies - HELD THAT:- First substantial question of law has already been answered against the revenue in M/S. ING VYSYA BANK LIMITED [2020 (1) TMI 1116 - KARNATAKA HIGH COURT]. The aforesaid statement made by learned counsel for the assessee could not be disputed by learned counsel for the revenue. First substantial question of law framed by this Court is answered against the revenue. Deduction u/s 36(1)(vii) - bad debts - assessee has not debited any bad debts write off in the profit and loss account and only the provision for bad debts (prudential write off) has been claimed as deduction in the computation of income as bad debt write off? - HELD THAT:- Second substantial question of law has also been answered against the revenue in M/S. VIJAYA BANK [2014 (10) TMI 1015 - KARNATAKA HIGH COURT] -The aforesaid fact also could not be disputed by learned counsel for the revenue. Second substantial question of law is also answered against the revenue and in favour of the assessee. Depreciation on ‘Held to Maturity’ category investments - Whether the same is notional in nature and against the RBI guidelines for valuation of securities? - HELD THAT:- Substantial question of law is also been answered against the revenue in the case of ‘KARNATAKA BANK LTD. VS. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 2(1)’[2013 (7) TMI 656 - KARNATAKA HIGH COURT]. The aforesaid aspect could not be disputed by learned counsel for the revenue. - Decided in favour of assessee. Deduction u/s 36(1)(viii) - Whether assessee is eligible for deduction u/s 36(1)(viii) even though the assessee is not an eligible entity under the provisions of the Act prior to amendment w.e.f. 01.04.2008? - HELD THAT:- The benefit of deduction under Section 36(1)(viii) of the Act was available to a Financial Corporation, which included the Public Company and Government Company. The explanation appended to clause (viii) further specifies that expression ‘Public Company’ shall have the meaning assigned to it under Section 3 of the Companies Act, 1956 and the expression ‘Government Company’ shall have the meaning assigned to it under Section 617 of the Companies Act, 1956. Admittedly, Vijaya Bank is not a Private Company. Therefore, the same fulfills the requirement of Section 3 of the Companies Act, 1956 and is a Public Company. It is also pertinent to note that 51% of the shares of Vijaya Bank are held by the Government of India and therefore, the same is a Government Company within the meaning of Section 617 of the Companies Act, 1956. Therefore, the assessee is squarely covered within the meaning of expression ‘Financial Corporation’ and is entitled to benefit of deduction under Section 36(1)(viii) of the Act. For the aforementioned reasons, the fourth substantial question of law is answered against the revenue and in favour of the assessee. Disallowance made under section 14A - HELD THAT:- The aforesaid question is also answered against the revenue by a Bench of this Court in M/S. SYNDICATE BANK [2020 (1) TMI 1141 - KARNATAKA HIGH COURT]. The aforesaid fact could not be disputed by learned counsel for the revenue. - Decided in favour of assessee.
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