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2019 (10) TMI 638 - HC - Income TaxMAT Provisions of section 115JB applicability - assessee whom the proviso to sub-section (2) of Section 211 of the Companies Act, 1956 applies i.e., company which is not required to prepare its profit and loss account in accordance with Part II and Part III of Schedule VI of the Companies Act, 1956 - HELD THAT - The issue has already been decided by a Division Bench of this Court in Kerala State Electricity Board, Thiruvananthapuram v. Dy. Commissioner of Income Tax, Circle 1, Thiruvananthapuram 2010 (11) TMI 127 - KERALA HIGH COURT after interpreting the provisions under Section 115JB, against the Revenue. The said decision has been re-iterated by a Division Bench of the Bombay High Court in The Commissioner of Income Tax-LTU, Commissioner of Income Tax (IT)-3 v. Union Bank of India and Others 2019 (5) TMI 355 - BOMBAY HIGH COURT after referring to the decision in KSEB (supra) In the light of the aforesaid pronouncements by the Kerala High Court as well as the Bombay High Court, the question of law raised by the Revenue does not arise, which is answered against them
Issues: Interpretation of Section 115JB of the Income Tax Act, 1961
Issue 1: Applicability of Section 115JB to companies not required to prepare profit and loss account under specific provisions of the Companies Act, 1956 The appeal raised the question of whether Section 115JB of the Income Tax Act, 1961 is applicable to companies exempted from preparing profit and loss accounts in accordance with specific provisions of the Companies Act, 1956. The court referred to a previous decision by a Division Bench of the Kerala High Court and a subsequent decision by the Bombay High Court, which interpreted Section 115JB against the Revenue. The court concluded that, based on these precedents, the question raised by the Revenue did not hold, and therefore, the appeal was dismissed. Conclusion: The court dismissed the Income Tax Appeal based on the interpretation of Section 115JB as per previous decisions by the Kerala High Court and the Bombay High Court, which ruled against the Revenue's argument on the applicability of the section to companies exempted from specific provisions of the Companies Act, 1956.
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