TMI Blog2020 (12) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... d pay tax on its book profit and thus contribute to the exchequer. Therefore, there can be no escape from the position that the assessee company is caught within the mischief of section 115JB, notwithstanding that the tax payable by it on its total income computed under the normal provisions of the Act is Rs. Nil. It would be anomalous to hold that where tax of Re.!!- is payable on the total income computed under the normal provisions of the Act, then section 115JB would be attracted, but it would not be attracted when the tax payable on the total income is Rs.Nil either because the total income is nil or is a negative figure. It is well settled that the section has to be interpreted in such a manner as to avoid absurdity and also in such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is prejudicial to the interest of revenue, is opposed to law and the facts and circumstances of the case. 2. The Ld. CIT(A) erred in deleting the addition of ₹ 4,95,59,340/- made by the A.O. u/s. 115JB. 3. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the Ld. CIT(A) be reversed and that of the Assessing Officer be restored. 2. Facts of the case are that the assessee is a company carrying on the business of generation and selling of power had filed Nil return of income under normal provisions of the Income Tax Act, 1961 ['the Act' for short]. The assessee also claimed that the provisions of section 115JB of the Act were not applicable to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue:- i) CIT Vs. United India Insurance Co. (2020) 117 taxmann.com 849 (SC) ii) Pr. CIT Vs. New India Assurance Co. Ltd. (2020) 114 taxmann.com 223 (SC) 5.1. Further, it was submitted that the SLP was admitted by Hon'ble Supreme Court against the judgement of Hon'ble Karnataka High Court in the case of CIT Vs. IngVysya Bank Ltd. and assessee's own case (186 DTR 193) and hence the issue may be decided in favour of the revenue. 6. On the other hand, Ld. A.R. relied on the judgement of the Hon'ble Karnataka High Court in assessee's own case and also order of the Tribunal in assessee's own case. 7. We have heard the rival submissions, perused the materials available on record and gone through the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral meeting in each year and s. 201 mandates that every year the Board of Directors of the company in general meeting shall lay before the company a balance sheet as at the end of the relevant period and also P L are for the period. Part if and Part III of Sch. VI to the Companies Act specify the method and manner of maintaining P L a/c. It is also pertinent to note that the assessee under s. 210 of the Companies Act. 1956 is also required to lay its account before the annual general meeting. However such accounts 'lave to be prepared in accordance with the Banking Regulation Act, 1949 which is not possible for the reasons assigned supra. The submission that proviso to sub-s. (2) of s. 115JB creates a legal fiction cannot be accepted as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1956. P L a/c prepared in accordance with the provisions of their Regulatory Act shall be taken as basis for computing book profit under s. 115JB. For the foregoing reasons, it is held that the provisions of s. 115JB(2) do not apply to the banking companies.-CIT vs. Union Bank of India (2019) 308 CTR (Born) 797 : (2019) 177 DTR (Born) 305 concurred with. 8. Being so, as on date, the issue raised by the Department entirely covered by the above judgement of the Hon'ble Karnataka High Court and also Tribunal in favour of the assessee and accordingly, we are inclined to decide the issue against the department and in favour of the assessee. 9. In the result, the appeal filed by the revenue is dismissed. Order pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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