BANK OF INDIA,MUMBAI vs. DCIT 2(1), MUMBAI

This appeal has been preferred by the assessee before the Ld CIT(A) against the order passed by the AO to give effect to the order passed by the first appellate authority. After giving effect, the total income became a negative figure and hence the AO assessed the total income by adopting book profit computed u/s 115JB of the Act. The Ld CIT(A) confirmed the same by following his order passed in the first round of proceedings. Aggrieved, the assessee has challenged the order passed by Ld CIT(A) on this issue.

The Ld A.R submitted that this issue has been decided in favour of the assessee in AY 2006-07, wherein the Tribunal has followed the decision rendered in the assessee’s own case in relating to AY 2001-02. Accordingly he prayed that this issue may be decided in accordance with the decision taken by the co-ordinate benches.

We heard Ld D.R and perused the record. Consistent with the view taken in AY 2006-07, we set aside the order passed by Ld CIT(A) on this issue and hold that the provisions of sec. 115JB shall not be applicable for both the years under consideration.

The next issue contested by the assessee relates to the granting of interest u/s 244A of the Act. The Ld A.R submitted that the assessee has been receiving refunds upon passing of orders by the appellate authorities or upon passing of orders u/s 154 of the Act. The Ld A.R submitted that the AO has made adjustment of refund (consisting of tax and interest) already granted against the refund of tax due in each of the successive orders. The Ld A.R submitted that the entire amount of refund (both tax and interest) granted should be first adjusted against the interest portion that has become due and then the remaining amount, if any, should be adjusted against the tax portion of the refund that has become due. In support of his contentions, the Ld A.R placed reliance on the decision rendered by the Tribunal in the assessee’s own case in to 5446/Mum/2013 dated 22.12.2014 and also the decision rendered by the Tribunal in the case of Union Bank of India (ITA No.571 & 574/Mum/2013 dated 23.6.2014).

We heard the parties on this issue. 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

In the result, the appeal filed by the assessee is treated as allowed. Order has been pronounced in the Court on 3.8.2016