TMI Blog2011 (8) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... nder sec. 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. Further, in the cases of RE. PRAXAIR PACIFIC LIMITED [ 2010 (7) TMI 51 - AUTHORITY FOR ADVANCE RULINGS] and RE. THE TIMKEN COMPANY [ 2010 (7) TMI 50 - AUTHORITY FOR ADVANCE RULINGS] , it was held that MAT provisions are applicable to a foreign company that does not have a physical presence in India, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer observed that it cannot be said that the provisions of section 115JB of the Act are not applicable to the bank. The Assessing Officer observed that the profit and loss account as per Banking Regulation Act, was to be considered and write off could not be allowed in computing the book profits. The Assessing Officer relied on the provisions of section 616 and 211 of the Companies Act in arriving at his conclusion. The Assessing Officer also relied on the decision of the Hon'ble Madras High Court in the case of Tamil Nadu Mercantile Bank 255 ITR 205 and stated that the High Court has impliedly accepted that the provisions of Companies Act were applicable to the bank. 4. On appeal, the ld. CIT(A) held that he w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable on record. In the instant case, the only dispute raised by the assessee is that since it is a bank and is required to prepare its accounts according to Banking Regulation Act, 1949 and not according to Schedule VI Part II and III of the Companies Act, 1956, the provisions of section 115JB are not applicable to it while computing the income under MAT. We find that recently the Mumbai Bench of the Tribunal in the case of in the case of Krung Thai Bank PCL Vs. Joint Director of Income Tax [International Taxation] [2010] 45 DTR 218 has held has under: 7. The plea of the assessee is indeed well taken, and it meets our approval. The provisions of s. 115JB can only come into play when the assessee is required to prepare its P L a/c in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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