2018 (11) TMI 1171 - AT - Income Tax

MAT - non-applicability of minimum alternative tax(popularly called as MAT ) on book profits u/s 115JB in the case of banks in favour of the assessee - Held that - As decided in assessee s own case for AY 2006-07 we hold that provisions of Section 115JB shall not be applicable to the assessee bank for the impugned assessment year under consideration viz. AY 2007-08. Computation of grant of interest u/s 244A payable to the assessee on refund arising out of the order giving effect to order of the appellate authority or consequent to order passed u/s 154 - Held that - Since it is matter involving computation of eligible amount of interest u/s 244A of the Act, we are of the view that this issue requires fresh examination at the end of the AO. In the decisions relied upon by the assessee, the Tribunal has followed the decision rendered by Hon ble Delhi High Court in the case of India Trade Promotion Organisation Vs. CIT (2013 (9) TMI 451 - DELHI HIGH COURT) and accordingly given direction to the AO to follow the said decision

Summary

Issues:
1. Applicability of Section 115JB of the Income Tax Act, 1961 to the assessee bank for assessment year 2007-08.
2. Computation of interest u/s 244A of the Income Tax Act, 1961 payable to the assessee on refund.
3. General ground raised by Revenue in the appeal for assessment year 2007-08.
4. Applicability of Section 115JB to banks for assessment year 2009-10.
5. General ground raised by Revenue in the appeal for assessment year 2009-10.

Issue 1: Applicability of Section 115JB for AY 2007-08:
The Revenue appealed against the CIT(A)'s order regarding the applicability of Section 115JB to the assessee bank for AY 2007-08. The tribunal, following previous decisions, held that Section 115JB shall not be applicable to the assessee bank for that assessment year. The tribunal referred to various case laws and decisions, including the decision of the Hon'ble Delhi High Court, to support its ruling. The appeal of the Revenue on this issue was dismissed.

Issue 2: Computation of Interest u/s 244A for AY 2007-08:
The Revenue raised grounds concerning the computation of interest u/s 244A payable to the assessee on refunds. The tribunal, in line with previous decisions, restored this issue to the AO for fresh examination based on directions given in earlier cases and the decision of the Hon'ble Delhi High Court. The grounds raised by Revenue on this issue were allowed for statistical purposes.

Issue 3: General Ground for AY 2007-08:
A general ground raised by Revenue in the appeal for AY 2007-08 was dismissed by the tribunal.

Issue 4: Applicability of Section 115JB for AY 2009-10:
The appeal for AY 2009-10 raised the issue of the applicability of Section 115JB to banks. The tribunal, based on its decision for AY 2007-08, ruled in favor of the assessee, deciding that Section 115JB shall not be applicable. The grounds raised by Revenue on this issue were dismissed.

Issue 5: General Ground for AY 2009-10:
A general ground raised by Revenue in the appeal for AY 2009-10 was dismissed by the tribunal.

In conclusion, the appeal for AY 2007-08 was partly allowed, and the appeal for AY 2009-10 was dismissed. The tribunal's decisions were based on the applicability of Section 115JB and the computation of interest u/s 244A, following previous rulings and legal precedents.