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The Tax Publishers2019 TaxPub(DT) 3212 (Bom-HC) : (2019) 308 CTR 0797 : (2019) 263 TAXMAN 0685 INCOME TAX ACT, 1961
Section 115JB
Section 115JB as it stood prior to its amendment by Finance Act, 2012, was not applicable to a banking company.
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MAT - Book profit - Applicability to banking company -
Question arose for consideration was whether section 115JB was applicable to assessee-bank for the year under consideration, i.e., assessment year 2005-06.Held: Explanation (3) below sub-section (2) of section 115JB. Starts with the expression 'For the removal of doubts'. It declares that for the purpose of said section in case of company to which second proviso to section 129(1) of Companies Act, 2013 was applicable, would have an option for assessment year commencing on or before 1-4-2012 to prepare its statement of profit and loss either in accordance with provisions of Schedule III to Companies Act, 2013 or in accordance with the provisions of the Act governing such company. In the original form, sub-section (2) of section 115JB did not offer any such option to a banking company, insurance company or electricity company to prepare its profit and loss account at its choice either in terms of its governing Act or as per terms of section 115JB. In plain terms, this is not a case of retrospective legislative amendment it is stated to be clarificatory amendment for removal of doubts. Therefore, section 115JB as it stood prior to its amendment by Finance Act, 2012, was not be applicable to a banking company.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
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