TMI Blog2012 (3) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... he Coordinate Bench in assessee’s own case in assessment year 2006-07 has held that the provisions of section 115JB are not applicable to the assessee Bank. In view of this, we hold that the order under section 154 passed by the Assessing Officer is not correct and therefore, the same was set aside. Accordingly assessee’s grounds in the above 2 years are allowed. - ITA No. 4155 to 4161/Mum/2011 - - - Dated:- 27-3-2012 - Shri R.S. Padvekar, Judicial Member and Shri B. Ramakotaiah, Accountant Member For the Appellant : Mr. C. Naresh For the Respondent : Mr. Subachan Ram, DR ORDER Per Bench: These are batch of appeals on similar issue filed by the assessee against the orders of the ACIT (LTT) Mumbai, which were in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year: 2004-05 2005-06): In these two appeals, the issue is about the action of the Assessing Officer in modifying under section 154 of the book profits under section 115JB by disallowing the provisions for wage arrears, others etc. consequent to the amendment brought out by the Finance Act, 2009 to Clause-1 of Section 115JB retrospective w.e.f. 1.4.2011.It was the contention of the Assessing Officer that since the law was amended retrospectively, the provisions for diminution value of assets or liabilities are to be disallowed under section 115JB. It was the contention of the assessee in respect to notice under section 154 that the provisions for restructured accounts, wage arrears, provisions for standard assets are not the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 30.6.2011 which relates to the applicability of section 115JB. It was submitted that the accounts of the appellant are prepared in accordance with the schedule III of the Banking Regulations Act and not in accordance with the Schedule VI of the Companies Act and following the decision of the ITAT in the case of Krug Thai Bank the Coordinate Bench in assessee s own case upheld the contention that the provisions of section 115JB are not applicable to the assessee bank. It was further submitted that on the issue of provisions which are to be considered following the decision of the Hon'ble Supreme Court in the case of Vijay Bank, it is necessary for the Assessing Officer to examine the ascertained liabilities and simply because ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions was determined at `150.91 crores under normal provisions and tax under section 115JB at `.28.06 crores under section115JB. Ultimately the taxes were determined under normal provisions without exercising the provisions of section 115JB. In that view, the entire exercises of modifying the orders is redundant as even after such adjustment, the tax determined under the normal provisions is more than the tax that are being determined by this order under section 154. 8. Be that as it may, just because a retrospective amendment has been carried out on the statue, the assessment cannot be modified without examining whether the provisions so made are to be disallowed or not. This requires detailed examination and in fact as for the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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