2018 (2) TMI 1942 - HC - Income Tax

MAT applicability - Grant of benefit to the assessee u/s 115JB - assessee is the Bihar State Finance Corporation created by Central Finance Corporation Act, and therefore, it is held to be a corporation created under the statute and not a company registered under the Companies Act, 1956 - HELD THAT - Benefit has been granted by the tribunal to the respondent assessee which is a creation of statute, we see no error or any substantial question of law warranting reconsideration merely because in the returns filed erroneously due to mistake of the official, filing the returns in stead of indicating the corporation to be creation of the Central Finance Corporation Act, it is shown to be a company, the statutory benefit accruing to the Corporation by virtue of Section 115JB cannot be denied and in doing so, the learned Tribunal has not committed any error and we find no substantial question of law, warranting reconsideration. That apart the deduction granted by the Tribunal which is also challenged in these appeals are based on due appreciation of the evidence and material that came on record and we see no perversity or illegality in the same warranting reconsideration, exercising our limited jurisdiction in a proceeding under Section 260A of the Income Tax Act.

Summary

Issues:
Challenge to orders passed by Income Tax Appellate Tribunal regarding benefit under Section 115JB of Income Tax Act.

Analysis:
The High Court of Patna heard appeals filed by the Revenue challenging orders of the Income Tax Appellate Tribunal regarding the grant of benefit to the assessee under Section 115JB of the Income Tax Act. The Tribunal had granted the benefit to the respondent assessee, the Bihar State Finance Corporation, which was created by the Central Finance Corporation Act. The Court noted that the assessee was a corporation created under a statute and not a company registered under the Companies Act, 1956. The Court found that the benefit granted by the Tribunal to the corporation, based on its statutory creation, was valid. The Court emphasized that the statutory benefit under Section 115JB could not be denied to the corporation, even if there were errors in the returns filed erroneously indicating the corporation as a company. The Court held that there was no error in the Tribunal's decision and no substantial question of law requiring reconsideration.

The High Court further examined the deductions granted by the Tribunal, which were also challenged in the appeals. The Court observed that the deductions were made based on a proper appreciation of the evidence and material on record. It found no perversity or illegality in the deductions that would warrant reconsideration. The Court, exercising its limited jurisdiction under Section 260A of the Income Tax Act, concluded that there were no grounds to support the appeals and subsequently dismissed them.