Section 115JB(2) of the Income Tax Act

Income-tax Act, 2025: s.206

Section 115JB(2) falls under section 115JB of the Income-tax Act, 1961, which corresponds to section 206 (Special provision for minimum alternate tax and alternate minimum tax) of the Income-tax Act, 2025.

Read section 206 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 115JB(2) is HDFC Bank Ltd. v. DCIT (383 ITR 529), cited in 408 of the 46 judgments on BharatTax that turn on this section.

Leading authorities on Section 115JB(2)

HDFC Bank Ltd. v. DCIT
383 ITR 529 · 2016 · High Court
408
citing judgments

Where an assessee has sufficient interest-free funds, investments yielding exempt income are presumed to be made out of such funds, precluding disallowance of related interest expenditure under section 14A.

Ballimal Naval Kishore v. CIT
224 ITR 414 · 1997 · Supreme Court
78
citing judgments

To determine if an expense is capital or revenue expenditure, the test focuses on whether the expenditure creates a capital asset or yields an enduring commercial advantage.

Punjab Land Development and Reclamation Corporation Ltd. v. Presiding Officer, Labour Court
3 SCC 682 · 1990 · Supreme Court
42
citing judgments

A decision is considered 'per incuriam' if rendered through inadvertence, such as when a court acts in ignorance of its own previous decisions, a superior court's decision, or statutory provisions. Further, defining a word in a statute implies that it has no other meaning, thereby restricting the scope unless additional categories are expressly included.

CIT v. HDFC Bank
104 Taxmann.com 97 · 2019 · High Court
22
citing judgments

Disallowance under Section 14A is not warranted merely because an assessee has sufficient interest-free funds to make investments that yield exempt income. No disallowance is called for if no expenditure is found to have been incurred for earning exempt income.

Fiber Boards Pvt. Ltd. v. CIT Bangalore
376 ITR 596 · 2015 · Supreme Court
20
citing judgments

Decisions of a larger bench of the Supreme Court are binding on benches of lesser or equal strength, and decisions of a smaller bench can be considered obiter dicta if they are in conflict with larger bench decisions.

CIT v. Tingri Tea Co. Ltd. (
84 ITD 563 · 2003 · ITAT
12
citing judgments

No disallowance of interest is warranted on interest-free advances to associated concerns when the assessee possesses substantial interest-free funds, such as shareholders' funds.

CIT v. Tingri Tea Co. Ltd.
79 ITR 294 · 1971 · High Court
9
citing judgments
222(Bom); Pr. CIT v. PTC India Financial Services Ltd.
146 Taxmann.com 174 · 2023 · High Court
8
citing judgments
PCIT v. Asphalt India Corp.
167 Taxmann.com 460 · 2024 · High Court
7
citing judgments
Gemstar Construction (P.) Ltd. v. Union of India
135 Taxmann.com 220 · 2022 · High Court
3
citing judgments

Judgments on Section 115JB(2)

National Stock Exchange of India Ltd., Mumbai vs. DCIT, Cir-7(1)(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3695/MUM/2023[2016-17]Status: DisposedITAT Mumbai20 Mar 2024AY 2016-17

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.3695/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2016-17) National Stock Exchange Of बिधम/ Dcit-Circle-7(1)(1) India Room No.126, 1St Floor, Vs. Exchange Plaza, Bandra Aayakar Bhavan, M. K. Kurla Complex, Bandra Road, Churchgate, East, Mumbai-400051. Mumbai-400020. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacn1797L (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Shailesh S. Shah Shri Vijay Bhatt Revenue By: Shri S. Srinivasu (Dr) सुनवाई की तारीख / Date Of Hearing: 06/03/2024 घोषणा की तारीख /Date Of Pronouncement: 20/03/2024 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/Nfac, Delhi, Dated 17.08.2023 For Ay. 2016-17. 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Upholding The Action Of The Ao Passed U/S 154 Of The Income Tax Act, 1961 (Hereinafter “The Act”) Wherein He Increased The Book Profit U/S 115Jb Of The Act By Making An Adjustment Of Rs.7,61,52,00,000/- [Statutory Contribution Towards Core Settlement Guarantee Fund (Core Sgf)] By Holding That Such A Contribution To Core Sgf Is To Meet An Unascertained Liability.

For Appellant: Shri Shailesh S. ShahFor Respondent: Shri S. Srinivasu (DR)
Section 115JSection 143(3)Section 154Section 37(1)

Siemens Gamesa Renewable Private Limited, Chennai vs. DCIT Corporate Circle 2(1), Chennai

The appeal stand partly allowed in terms of our above order

ITTPA 88/CHNY/2018[214-15]Status: DisposedITAT Chennai08 Sept 2023

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपीलसं./Ita No.71/Chny/2018 (िनधा<रणवष< / Assessment Year: 2013-14) & आयकरअपीलसं./It(Tp)A No.88/Chny/2018 (िनधा<रणवष< / Assessment Year: 2014-15) M/S. Siemens Gamesa Renewable Power Dcit Private Limited Corporate Circle-2(1) (Formerly Known As Gamesa Renewable Chennai. बनाम/ Pvt.Ltd. Before That Known As Gamesa Wind Vs. Turbine Pvt.Ltd.) 334, Futura Tech Park, 8Th Floor, Block B Sholinganallur, Chennai-600 119. "थायीलेखासं./जीआइआरसं./Pan/Gir No.Aaccg-6027-C (अपीलाथ"/Appellant) : ( !थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri B. Ramakrishnan (Fca) & Shri Shrenik Chordia (Ca) – Ld.Ar !थ" की ओर से/Respondent By : Shri Sasi Kumar (Cit) – Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 12-07-2023 घोषणाकीतारीख/Date Of Pronouncement : 08-09-2023 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeals By Assessee For Assessment Years (Ay) 2013- 14 & 2014-15 Have Identical Facts & Issues. The Appeal For Ay 2013- 14 Arises Out Of Final Assessment Order Dated 30-10-2017 Passed By Ld.

For Appellant: Shri B. Ramakrishnan (FCA) &For Respondent: Shri Sasi Kumar (CIT) – Ld. DR
Section 115JSection 139(1)Section 143(3)Section 144C(5)Section 14ASection 36(1)(va)Section 92C