DCIT Vs Central Bank of India (ITAT Mumbai)
The ITAT Mumbai heard the appeal filed by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (CIT(A)-NFAC), Delhi, dated 25 February 2025, relating to Assessment Year (AY) 2016-17. The Revenue challenged the deletion of a penalty of ₹305.49 crore imposed under section 271(1)(c) of the Income Tax Act, 1961 (the Act), arguing that the CIT(A) erred in holding that provisions of section 115JB (Minimum Alternate Tax on book profits) were not applicable to the assessee bank. The Revenue further contended that the Finance Act, 2012 amendment to section 115JB(2), which included entities preparing financial statements under their governing Acts, such as the Banking Regulation Act, 1949, within the ambit of MAT, had been overlooked.
The Tribunal noted a delay of 126 days in filing the appeal, which was condoned after determining that there was a reasonable cause. The facts reveal that the assessee, Central Bank of India, filed its original return for AY 2016-17 on 30 November 2016 declaring a business loss of ₹61.38 crore under normal provisions and book profits of ₹2.49 billion under section 115JB. A revised return filed on 27 March 2018 declared a total loss of ₹73.44 crore and book profits of ₹2.48 billion under section 115JB. The case was selected for scrutiny, and assessment proceedings completed under section 143(3) determined total taxable income of ₹6.66 billion under normal provisions and ₹41.77 billion under section 115JB.
