ACIT vs National Dairy Development Board (ITAT Ahmedabad)
ITAT Ahmedabad held that issue of applicability of section 115JB to National Dairy Development Board is debatable and not a mistake apparent from record hence rectification order passed is beyond the scope of section 154 of the Income Tax Act.
Facts- The present appeals are filed by the Revenue as against the appellate orders arising against rectification and assessment orders passed under Section 154 and 143(3) of the Income-tax Act, 1961 for Assessment Years 2010–11 to 2013–14. Since the common issue of applicability of the provisions of Section 115JB (MAT) to the assessee as Statutory Corporation and whether rectification order u/s 154 was legally permissible are involved in all these appeals.
Conclusion- Held that the issue of applicability of Section 115JB to NDDB is clearly debatable and not a mistake apparent from record. The rectification order passed is beyond the scope of section 154 of the Act and therefore liable to be quashed as without jurisdiction.
Held that section 115JB of the Act is not applicable to banks formed under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, not registered under the Companies Act. Hence, MAT is not leviable on such banks even on post amendment by Finance Act 2012 effective from 01.04.2013 by insertion of clause (b) to section 115JB(2) of the Act.
