ACIT Vs State Bank of India (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT) Mumbai addressed an appeal concerning the applicability of Section 115JB of the Income Tax Act, 1961, to the State Bank of India (SBI) for the assessment year 2006-07. The dispute originated from an assessment order where the as-sessing officer computed SBI’s income under the Minimum Alternate Tax (MAT) provisions of Section 115JB. The Commissioner of Income Tax (Appeals) (CIT(A)) overturned this decision, stating that Section 115JB did not apply to banking companies regulated by the Banking Regulation Act, 1949, prior to April 1, 2012. The revenue department challenged this decision, arguing that SBI was not exempt from MAT.
The ITAT reviewed the case, noting that a similar issue had been previ-ously adjudicated in SBI’s favor in earlier assessment years. The tribunal referenced a prior decision where it was established that Section 115JB applies to companies preparing profit and loss accounts under Schedule VI of the Companies Act. However, banking companies, governed by the Banking Regulation Act, are exempt from this requirement. The ITAT followed the precedent set by its coordinate bench, confirming that Section 115JB’s provisions were not applicable to SBI for the assessment year in question. Consequently, the computation of income under Section 115JB, as made by the assessing officer, was deleted. The ITAT dismissed the revenue’s appeal, upholding the CIT(A)’s decision and ruling that the MAT provisions did not apply to SBI for the relevant assessment year.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
