CENTRAL BANK OF INDIA,MUMBAI vs. ACIT - 2(1)(2), MUMBAI

ITA 3740/MUM/2018Status: HeardITAT Mumbai06 September 2024AY 2013-1447 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the provisions of Section 115JB are not applicable to the assessee banks. This decision was based on previous judgments in the assessee's own case and the High Court's ruling that the computation machinery for Section 115JB fails for such banks.

What were the facts?

The appeals concerned whether Section 115JB of the Income-tax Act, specifically after its amendment by the Finance Act, 2012, applied to 'corresponding new banks' like Union Bank of India and Central Bank of India. The Assessing Officer and CIT(A) held that the amended provisions brought these banks within the scope of Section 115JB.

What were the issues?

The primary issue was whether the amended Section 115JB, particularly clause (b) of sub-section (2), applies to banking companies constituted as 'corresponding new banks'. This involved interpreting the applicability of the Companies Act provisions versus the specific banking regulations for preparing profit and loss accounts.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 129,Section 211

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(4)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Cause title — parties, addresses and appearances
ITA No.424/Mum/2020 & 3740/Mum/2018 The Union Bank of India & Central Bank of India

PER AMIT SHUKLA (J.M): In the aforesaid cases, this Special Bench has been constituted for adjudication of following question of law which is permeating in all the appeals of aforementioned banks. "Whether clause (b) to sub section (2) of section 115JB of the Income-tax Act inserted by Finance Act, 2012 w.e.f. 1-4-2013 will bring the assessee-banks constituted as 'corresponding new bank' in terms of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 within the scope of section 115JB of the Act from assessment year 2013-14 onwards?"

2.

As a lead case we are taking up the appeal of Union Bank of India in ITA No.424/Mum/2020. For the A.Y.2015-16, Union Bank of India has computed tax payable on book profit u/s.115JB at Rs.604,86,39,540/- and tax payable under the normal provisions at Rs.1153,29,54,493/-. The ld. AO asked the assessee to furnish the computation of book profit and also required the assessee as to why ‘provisions and contingency', debited to the profit and loss account, should not be added back for the computation of book profit u/s.115JB.

3.

In respo

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 115JB

All 5,494 judgments and leading authorities on Section 115JB →

Recent GST High Court judgments

Search GST case law →