2021 (10) TMI 168 - HC - Income Tax

MAT Applicability u/s 115JB - HELD THAT - Substantial question of law involved in this appeal has already been answered in favour of the assessee by this Court in the case of COMMISSIONER OF INCOME-TAX, BANGALORE Vs. ING VYSYA BANK LTD 2020 (1) TMI 1116 - KARNATAKA HIGH COURT in favour of the assessee and against the revenue.

Summary

Issues:
Interpretation of Section 115JB of the Income Tax Act, 1961 regarding its applicability to the assessee company for the Assessment year 2011-12.

Analysis:

1. The High Court of Karnataka heard an appeal under Section 260A of the Income Tax Act, 1961, filed by the revenue against the order of the Income-Tax Appellate Tribunal, Bengaluru. The appeal questioned the applicability of Section 115JB to the assessee company for the Assessment year 2011-12. The Court admitted the appeal based on the substantial question of law regarding the correct interpretation of Section 115JB in the given circumstances.

2. During the proceedings, the counsel for the assessee referred to a previous judgment of the Court in the case of COMMISSIONER OF INCOME-TAX, BANGALORE Vs. ING VYSYA BANK LTD, where a similar issue was addressed. The counsel argued that the substantial question of law in the present appeal had already been decided in favor of the assessee in the mentioned case. The Court noted that the said submission was not contested by the revenue's counsel.

3. The Court, considering the precedent and reasoning provided in the earlier judgment, concluded that the substantial question of law framed in the current appeal should be resolved in favor of the assessee and against the revenue. The Court found that the provisions of Section 115JB were not applicable to the assessee company for the Assessment year 2011-12, as the tax payable under normal provisions was lower compared to the tax payable on the book profit under Section 115JB of the Act.

4. Consequently, the Court dismissed the appeal filed by the revenue, upholding the decision that the provisions of Section 115JB were not applicable to the assessee company for the relevant assessment year. The judgment reaffirmed the interpretation and application of tax provisions in line with the earlier ruling and settled the matter in favor of the assessee based on the legal principles established in the previous case.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented, and the final decision rendered by the High Court of Karnataka.