Appellate Tribunal affirms Commissioner's decisions on Section 115JB for banking companies. The Appellate Tribunal upheld the decisions of the Commissioner of Income-tax (Appeals) regarding the applicability of Section 115JB to banking companies ...
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Appellate Tribunal affirms Commissioner's decisions on Section 115JB for banking companies.
The Appellate Tribunal upheld the decisions of the Commissioner of Income-tax (Appeals) regarding the applicability of Section 115JB to banking companies and the deletion of addition made on account of depreciation on leased assets. The Tribunal ruled in favor of the assessee, citing previous decisions and consistency in treatment of similar issues. The appeal was dismissed by the Tribunal, affirming the decisions of the lower authority.
Issues: 1. Applicability of Sec. 115JB to banking companies. 2. Deletion of addition made on account of depreciation on leased assets.
Analysis: 1. The first issue raised in the appeal was regarding the applicability of Section 115JB of the Income-tax Act, 1961 to banking companies. The Appellate Tribunal referred to a previous decision in the assessee's own case for the assessment year 2009-10, where it was held that Section 115JB was not applicable to banking companies. This decision was supported by the Tribunal's rulings in cases involving Union Bank of India and Indian Bank. The Tribunal dismissed the revenue's appeal on this ground, stating that the issue was already settled in favor of the assessee.
2. The second issue pertained to the deletion of an addition made on account of depreciation on leased assets. The Tribunal noted that this issue was already decided in favor of the assessee for the assessment years 2008-09 and 2007-08. The Tribunal allowed the claim for depreciation on leased assets in those years. Therefore, the Tribunal dismissed this ground of appeal as well, stating that the issue of depreciation on leased assets was only consequential in nature and needed to be decided in line with the decisions for the earlier years for the sake of consistency.
In conclusion, the Appellate Tribunal upheld the decisions of the Commissioner of Income-tax (Appeals) in both issues raised by the revenue. The appeal was dismissed, and the order was pronounced in open court on 17th November 2017.
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