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2021 (3) TMI 1398 - AT - Income TaxApplicability of provision of section 115JB - provision for bad debt - assessee has not produced details of credit balance of provision of bad debt after set off of bad debt of relevant year - HELD THAT - As decided in assessee own case 2018 (7) TMI 2295 - ITAT JAIPUR it is held that this issue is covered in favour of appellant. Therefore provisions of section 115JB are not applicable in assessee s case and it is not to be subjected to MAT. This ground of appeal is allowed. DR has not placed on record any new facts and judicial pronouncements therefore considering the totality of facts and circumstances of the case as well as respectfully following the orders of the Coordinate Benches of this Tribunal as well as decision of the Hon ble Jurisdictional High Court we do not find any reason to interfere or deviate from the findings so recorded by the ld. CIT(A) and we uphold the same. Appeal of the revenue stands dismissed.
Issues:
Applicability of Section 115JB of the Income Tax Act, 1961 in the case of the assessee. Analysis: The appeal filed by the revenue against the order of the ld. CIT(A) dated 23/08/2019 for the A.Y. 2016-17 was heard through video conference due to the Covid-19 Pandemic situation. The revenue contested the denial by the ld. CIT(A) regarding the applicability of Section 115JB of the Income Tax Act, 1961 to the assessee, arguing that it should be subjected to Minimum Alternate Tax (MAT). The assessee, engaged in providing long-term finance to industrial units in Rajasthan, had filed its return of income declaring total income of Rs. 1,49,32,440. The Assessing Officer (A.O.) passed an assessment order determining total income of Rs. 1,83,94,440 by making an addition of Rs. 34,62,000. The ld. CIT(A) had ruled in favor of the assessee, holding that Section 115JB was not applicable. The Revenue, aggrieved by this decision, appealed before the ITAT. The ld. CIT-DR supported the A.O.'s order, emphasizing that bad debts should be debited to the provision for bad debt as per the Income Tax Act. The ld. AR for the assessee reiterated arguments made before the ld. CIT(A) and pointed out favorable decisions in the assessee's own case in previous assessment years. The ITAT reviewed the contentions and the material on record, noting that the ld. CIT(A) had addressed the issue in her order. The ITAT observed that the Hon'ble ITAT, Jaipur, had previously decided in favor of the assessee on similar issues. The ITAT also referenced the decision of the Hon'ble Jurisdictional High Court in the assessee's case for earlier assessment years, where it was held that MAT provisions were not applicable to financial corporations due to non-maintenance of accounts as per Schedule-VI of the Companies Act. Further, the ITAT noted that the Revenue's appeals against the Tribunal's orders were dismissed by the Hon'ble Jurisdictional High Court. The ITAT upheld the ld. CIT(A)'s decision, considering the decisions of the Coordinate Bench of the Tribunal and the Hon'ble Rajasthan High Court in the assessee's favor. Despite SLPs filed by the Revenue before the Supreme Court, no judgment had been passed. The ITAT, based on the totality of facts and following previous decisions, found no reason to interfere with the ld. CIT(A)'s findings and dismissed the revenue's appeal. The order was pronounced on 24th March, 2021.
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