Bank of Baroda Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that provisions of section 115JB of the Income Tax Act cannot be applied to assessee bank and consequently the tax on book profits (MAT) are not applicable to assessee bank. Accordingly, appeal of the assessee bank allowed.
Facts- The assessee is in the business of banking. The case of the assessee was selected for scrutiny and accordingly notices u/s 143(2) as well as 142(1) of the Act were issued along with the questionnaire calling for various details in order to verify the claims made by the assessee in the return of income. AO finally passed the assessment order by assessing on the total income of Rs.1750,77,68,383/- under the regular provisions and also held that the provisions of section 115JB of the Act was applicable to the assessee bank and determined the book profit at Rs.447,95,02,243/-.
CIT(A) partly allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the question referred to Special Bench is decided in favour of the assessee banks that clause (b) to sub section (2) of section 115JB of the Income-tax Act inserted by Finance Act, 2012 w.e.f. 14-2013, that is, from assessment year ITA No.424/Mum/2020 & 3740/Mum/2018 The Union Bank of India & Central Bank of India 47 2013-14 onwards, are not applicable to the banks constituted as ‘corresponding new bank’ in terms of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and therefore, the provision of Section 115JB cannot be applied and consequently, the tax on book profits (MAT) are not applicable to such banks.
